Correlation Between Humpuss Intermoda and PT Jobubu

Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and PT Jobubu 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 Humpuss Intermoda and PT Jobubu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Humpuss Intermoda Transportasi and PT Jobubu Jarum, you can compare the effects of market volatilities on Humpuss Intermoda and PT Jobubu 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 Humpuss Intermoda with a short position of PT Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and PT Jobubu.

Diversification Opportunities for Humpuss Intermoda and PT Jobubu

0.69

Correlation Coefficient

Humpuss Intermoda  PT Jobubu

Poor diversification

The 3 months correlation between Humpuss and BEER is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum and Humpuss Intermoda 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 Humpuss Intermoda Transportasi are associated (or correlated) with PT Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and PT Jobubu go up and down completely randomly.

Pair Corralation between Humpuss Intermoda and PT Jobubu

Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to under-perform the PT Jobubu. In addition to that, Humpuss Intermoda is 2.23 times more volatile than PT Jobubu Jarum. It trades about -0.23 of its total potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.25 per unit of volatility. If you would invest  15,000  in PT Jobubu Jarum on December 30, 2024 and sell it today you would lose (6,200) from holding PT Jobubu Jarum or give up 41.33% of portfolio value over 90 days.

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

Humpuss Intermoda Transportasi  vs.  PT Jobubu Jarum

Humpuss Intermoda

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humpuss Intermoda Transportasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting 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.

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 conflicting 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.

Pair Trading with Humpuss Intermoda and PT Jobubu

The main advantage of trading using opposite Humpuss Intermoda and PT Jobubu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, PT Jobubu 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 PT Jobubu will offset losses from the drop in PT Jobubu's long position.

The idea behind Humpuss Intermoda Transportasi and PT Jobubu Jarum 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.