Correlation Between Jayamas Medica and PT Puri
Can any of the company-specific risk be diversified away by investing in both Jayamas Medica and PT Puri 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 Jayamas Medica and PT Puri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayamas Medica Industri and PT Puri Sentul, you can compare the effects of market volatilities on Jayamas Medica and PT Puri 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 Jayamas Medica with a short position of PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayamas Medica and PT Puri.
Diversification Opportunities for Jayamas Medica and PT Puri
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jayamas and KDTN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jayamas Medica Industri and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and Jayamas Medica 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 Jayamas Medica Industri are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Jayamas Medica i.e., Jayamas Medica and PT Puri go up and down completely randomly.
Pair Corralation between Jayamas Medica and PT Puri
Assuming the 90 days trading horizon Jayamas Medica Industri is expected to under-perform the PT Puri. But the stock apears to be less risky and, when comparing its historical volatility, Jayamas Medica Industri is 2.1 times less risky than PT Puri. The stock trades about -0.18 of its potential returns per unit of risk. The PT Puri Sentul is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12,000 in PT Puri Sentul on December 29, 2024 and sell it today you would earn a total of 0.00 from holding PT Puri Sentul or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jayamas Medica Industri vs. PT Puri Sentul
Performance |
Timeline |
Jayamas Medica Industri |
PT Puri Sentul |
Jayamas Medica and PT Puri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jayamas Medica and PT Puri
The main advantage of trading using opposite Jayamas Medica and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayamas Medica position performs unexpectedly, PT Puri 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 Puri will offset losses from the drop in PT Puri's long position.Jayamas Medica vs. Steel Pipe Industry | Jayamas Medica vs. Gunawan Dianjaya Steel | Jayamas Medica vs. Lippo General Insurance | Jayamas Medica vs. HK Metals Utama |
PT Puri vs. PT Primadaya Plastisindo | PT Puri vs. PT Ketrosden Triasmitra | PT Puri vs. Menthobi Karyatama Raya | PT Puri vs. Jayamas Medica Industri |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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