Correlation Between Pollux Investasi and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Pollux Investasi and Jaya Sukses 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 Pollux Investasi and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Investasi Internasional and Jaya Sukses Makmur, you can compare the effects of market volatilities on Pollux Investasi and Jaya Sukses 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 Pollux Investasi with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and Jaya Sukses.
Diversification Opportunities for Pollux Investasi and Jaya Sukses
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pollux and Jaya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur and Pollux Investasi 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 Pollux Investasi Internasional are associated (or correlated) with Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Pollux Investasi i.e., Pollux Investasi and Jaya Sukses go up and down completely randomly.
Pair Corralation between Pollux Investasi and Jaya Sukses
Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to generate 9.5 times more return on investment than Jaya Sukses. However, Pollux Investasi is 9.5 times more volatile than Jaya Sukses Makmur. It trades about 0.03 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.27 per unit of risk. If you would invest 76,000 in Pollux Investasi Internasional on September 9, 2024 and sell it today you would earn a total of 2,500 from holding Pollux Investasi Internasional or generate 3.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Pollux Investasi Internasional vs. Jaya Sukses Makmur
Performance |
Timeline |
Pollux Investasi Int |
Jaya Sukses Makmur |
Pollux Investasi and Jaya Sukses Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pollux Investasi and Jaya Sukses
The main advantage of trading using opposite Pollux Investasi and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Investasi position performs unexpectedly, Jaya Sukses 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 Sukses will offset losses from the drop in Jaya Sukses' long position.Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Transaction History View history of all your transactions and understand their impact on performance |