Correlation Between Pollux Investasi and Urban Jakarta

Can any of the company-specific risk be diversified away by investing in both Pollux Investasi and Urban Jakarta 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 Urban Jakarta 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 Urban Jakarta Propertindo, you can compare the effects of market volatilities on Pollux Investasi and Urban Jakarta 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 Urban Jakarta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and Urban Jakarta.

Diversification Opportunities for Pollux Investasi and Urban Jakarta

0.32

Correlation Coefficient

Pollux Investasi  Urban Jakarta

Weak diversification

The 3 months correlation between Pollux and Urban is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional and Urban Jakarta Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Jakarta Propertindo 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 Urban Jakarta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Jakarta Propertindo has no effect on the direction of Pollux Investasi i.e., Pollux Investasi and Urban Jakarta go up and down completely randomly.

Pair Corralation between Pollux Investasi and Urban Jakarta

Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to generate 0.61 times more return on investment than Urban Jakarta. However, Pollux Investasi Internasional is 1.64 times less risky than Urban Jakarta. It trades about 0.03 of its potential returns per unit of risk. Urban Jakarta Propertindo is currently generating about 0.0 per unit of risk. If you would invest  76,000  in Pollux Investasi Internasional on September 6, 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 Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pollux Investasi Internasional  vs.  Urban Jakarta Propertindo

Pollux Investasi Int

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pollux Investasi Internasional are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Pollux Investasi is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Urban Jakarta Propertindo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urban Jakarta Propertindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Urban Jakarta is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pollux Investasi and Urban Jakarta

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

The idea behind Pollux Investasi Internasional and Urban Jakarta Propertindo 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.