Correlation Between Jaya Swarasa and Pratama Abadi

Can any of the company-specific risk be diversified away by investing in both Jaya Swarasa and Pratama Abadi 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 Swarasa and Pratama Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jaya Swarasa Agung and Pratama Abadi Nusa, you can compare the effects of market volatilities on Jaya Swarasa and Pratama Abadi 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 Swarasa with a short position of Pratama Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Swarasa and Pratama Abadi.

Diversification Opportunities for Jaya Swarasa and Pratama Abadi

0.0

Correlation Coefficient

Jaya Swarasa  Pratama Abadi

Pay attention - limited upside

The 3 months correlation between Jaya and Pratama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Swarasa Agung and Pratama Abadi Nusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pratama Abadi Nusa and Jaya Swarasa 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 Swarasa Agung are associated (or correlated) with Pratama Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pratama Abadi Nusa has no effect on the direction of Jaya Swarasa i.e., Jaya Swarasa and Pratama Abadi go up and down completely randomly.

Pair Corralation between Jaya Swarasa and Pratama Abadi

If you would invest  0.00  in Jaya Swarasa Agung on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Jaya Swarasa Agung or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Jaya Swarasa Agung  vs.  Pratama Abadi Nusa

Jaya Swarasa Agung

Risk-Adjusted Performance

Very Weak

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

Pratama Abadi Nusa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pratama Abadi Nusa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Jaya Swarasa and Pratama Abadi

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

The idea behind Jaya Swarasa Agung and Pratama Abadi Nusa 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .