Correlation Between Mega Manunggal and Jaya Real
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and Jaya Real 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 Mega Manunggal and Jaya Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mega Manunggal Property and Jaya Real Property, you can compare the effects of market volatilities on Mega Manunggal and Jaya Real 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 Mega Manunggal with a short position of Jaya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Jaya Real.
Diversification Opportunities for Mega Manunggal and Jaya Real
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mega and Jaya is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and Jaya Real Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Real Property and Mega Manunggal 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 Mega Manunggal Property are associated (or correlated) with Jaya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Real Property has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and Jaya Real go up and down completely randomly.
Pair Corralation between Mega Manunggal and Jaya Real
Assuming the 90 days trading horizon Mega Manunggal Property is expected to generate 4.34 times more return on investment than Jaya Real. However, Mega Manunggal is 4.34 times more volatile than Jaya Real Property. It trades about 0.07 of its potential returns per unit of risk. Jaya Real Property is currently generating about -0.04 per unit of risk. If you would invest 43,000 in Mega Manunggal Property on September 6, 2024 and sell it today you would earn a total of 4,800 from holding Mega Manunggal Property or generate 11.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mega Manunggal Property vs. Jaya Real Property
Performance |
Timeline |
Mega Manunggal Property |
Jaya Real Property |
Mega Manunggal and Jaya Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mega Manunggal and Jaya Real
The main advantage of trading using opposite Mega Manunggal and Jaya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal position performs unexpectedly, Jaya Real 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 Jaya Real will offset losses from the drop in Jaya Real's long position.Mega Manunggal vs. Mitra Pinasthika Mustika | Mega Manunggal vs. Jakarta Int Hotels | Mega Manunggal vs. Asuransi Harta Aman | Mega Manunggal vs. Indosterling Technomedia Tbk |
Jaya Real vs. Mitra Pinasthika Mustika | Jaya Real vs. Jakarta Int Hotels | Jaya Real vs. Asuransi Harta Aman | Jaya Real vs. Indosterling Technomedia Tbk |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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