Correlation Between Champion Pacific and Jasa Armada
Can any of the company-specific risk be diversified away by investing in both Champion Pacific and Jasa Armada 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 Champion Pacific and Jasa Armada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Pacific Indonesia and Jasa Armada Indonesia, you can compare the effects of market volatilities on Champion Pacific and Jasa Armada 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 Champion Pacific with a short position of Jasa Armada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Pacific and Jasa Armada.
Diversification Opportunities for Champion Pacific and Jasa Armada
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Jasa is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Champion Pacific Indonesia and Jasa Armada Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Armada Indonesia and Champion Pacific 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 Champion Pacific Indonesia are associated (or correlated) with Jasa Armada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Armada Indonesia has no effect on the direction of Champion Pacific i.e., Champion Pacific and Jasa Armada go up and down completely randomly.
Pair Corralation between Champion Pacific and Jasa Armada
Assuming the 90 days trading horizon Champion Pacific Indonesia is expected to generate 1.56 times more return on investment than Jasa Armada. However, Champion Pacific is 1.56 times more volatile than Jasa Armada Indonesia. It trades about 0.02 of its potential returns per unit of risk. Jasa Armada Indonesia is currently generating about -0.04 per unit of risk. If you would invest 54,000 in Champion Pacific Indonesia on December 30, 2024 and sell it today you would earn a total of 500.00 from holding Champion Pacific Indonesia or generate 0.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Champion Pacific Indonesia vs. Jasa Armada Indonesia
Performance |
Timeline |
Champion Pacific Ind |
Jasa Armada Indonesia |
Champion Pacific and Jasa Armada Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Champion Pacific and Jasa Armada
The main advantage of trading using opposite Champion Pacific and Jasa Armada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Pacific position performs unexpectedly, Jasa Armada 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 Jasa Armada will offset losses from the drop in Jasa Armada's long position.Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
Jasa Armada vs. PT Indonesia Kendaraan | Jasa Armada vs. PP Presisi Tbk | Jasa Armada vs. Cikarang Listrindo Tbk | Jasa Armada vs. Pelita Samudera Shipping |
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.
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