Correlation Between Jaya Sukses and Urban Jakarta
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses 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 Jaya Sukses and Urban Jakarta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Sukses Makmur and Urban Jakarta Propertindo, you can compare the effects of market volatilities on Jaya Sukses 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 Jaya Sukses with a short position of Urban Jakarta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Urban Jakarta.
Diversification Opportunities for Jaya Sukses and Urban Jakarta
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Urban is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur 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 Jaya Sukses 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 Jaya Sukses Makmur 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 Jaya Sukses i.e., Jaya Sukses and Urban Jakarta go up and down completely randomly.
Pair Corralation between Jaya Sukses and Urban Jakarta
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to generate 0.05 times more return on investment than Urban Jakarta. However, Jaya Sukses Makmur is 20.42 times less risky than Urban Jakarta. It trades about 0.22 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 98,500 in Jaya Sukses Makmur on September 5, 2024 and sell it today you would earn a total of 3,000 from holding Jaya Sukses Makmur or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jaya Sukses Makmur vs. Urban Jakarta Propertindo
Performance |
Timeline |
Jaya Sukses Makmur |
Urban Jakarta Propertindo |
Jaya Sukses and Urban Jakarta Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jaya Sukses and Urban Jakarta
The main advantage of trading using opposite Jaya Sukses and Urban Jakarta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses 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.Jaya Sukses vs. Intanwijaya Internasional Tbk | Jaya Sukses vs. Champion Pacific Indonesia | Jaya Sukses vs. Mitra Pinasthika Mustika | Jaya Sukses vs. Jakarta Int Hotels |
Urban Jakarta vs. Pollux Properti Indonesia | Urban Jakarta vs. Maha Properti Indonesia | Urban Jakarta vs. Jaya Sukses Makmur |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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