Correlation Between PT Jobubu and Ciptadana Asset

Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Ciptadana Asset at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Jobubu and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Jobubu Jarum and Ciptadana Asset Management, you can compare the effects of market volatilities on PT Jobubu and Ciptadana Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Jobubu with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Ciptadana Asset.

Diversification Opportunities for PT Jobubu and Ciptadana Asset

-0.32

Correlation Coefficient

PT Jobubu  Ciptadana Asset

Very good diversification

The 3 months correlation between BEER and Ciptadana is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana and PT Jobubu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Jobubu Jarum are associated (or correlated) with Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of PT Jobubu i.e., PT Jobubu and Ciptadana Asset go up and down completely randomly.

Pair Corralation between PT Jobubu and Ciptadana Asset

Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Ciptadana Asset. But the stock apears to be less risky and, when comparing its historical volatility, PT Jobubu Jarum is 1.01 times less risky than Ciptadana Asset. The stock trades about -0.25 of its potential returns per unit of risk. The Ciptadana Asset Management is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,739  in Ciptadana Asset Management on December 30, 2024 and sell it today you would earn a total of  561.00  from holding Ciptadana Asset Management or generate 9.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PT Jobubu Jarum  vs.  Ciptadana Asset Management

PT Jobubu Jarum

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Jobubu Jarum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ciptadana Asset Mana

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ciptadana Asset Management are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Ciptadana Asset disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Jobubu and Ciptadana Asset

The main advantage of trading using opposite PT Jobubu and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Ciptadana Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ciptadana Asset will offset losses from the drop in Ciptadana Asset's long position.

The idea behind PT Jobubu Jarum and Ciptadana Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.