Correlation Between PT Cerestar and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both PT Cerestar and Jaya Swarasa 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 PT Cerestar and Jaya Swarasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Cerestar Indonesia and Jaya Swarasa Agung, you can compare the effects of market volatilities on PT Cerestar and Jaya Swarasa 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 PT Cerestar with a short position of Jaya Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cerestar and Jaya Swarasa.
Diversification Opportunities for PT Cerestar and Jaya Swarasa
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TRGU and Jaya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding PT Cerestar Indonesia and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung and PT Cerestar 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 PT Cerestar Indonesia are associated (or correlated) with Jaya Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of PT Cerestar i.e., PT Cerestar and Jaya Swarasa go up and down completely randomly.
Pair Corralation between PT Cerestar and Jaya Swarasa
Assuming the 90 days trading horizon PT Cerestar Indonesia is expected to under-perform the Jaya Swarasa. In addition to that, PT Cerestar is 1.3 times more volatile than Jaya Swarasa Agung. It trades about -0.17 of its total potential returns per unit of risk. Jaya Swarasa Agung is currently generating about 0.0 per unit of volatility. If you would invest 5,000 in Jaya Swarasa Agung on December 29, 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 | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Cerestar Indonesia vs. Jaya Swarasa Agung
Performance |
Timeline |
PT Cerestar Indonesia |
Jaya Swarasa Agung |
PT Cerestar and Jaya Swarasa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Cerestar and Jaya Swarasa
The main advantage of trading using opposite PT Cerestar and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cerestar position performs unexpectedly, Jaya Swarasa 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 Swarasa will offset losses from the drop in Jaya Swarasa's long position.PT Cerestar vs. Autopedia Sukses Lestari | PT Cerestar vs. PT Dewi Shri | PT Cerestar vs. PT Cilacap Samudera | PT Cerestar vs. PT Sari Kreasi |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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