Correlation Between Visa and Jasuindo Tiga
Can any of the company-specific risk be diversified away by investing in both Visa and Jasuindo Tiga 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 Visa and Jasuindo Tiga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Jasuindo Tiga Perkasa, you can compare the effects of market volatilities on Visa and Jasuindo Tiga 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 Visa with a short position of Jasuindo Tiga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jasuindo Tiga.
Diversification Opportunities for Visa and Jasuindo Tiga
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Jasuindo is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jasuindo Tiga Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasuindo Tiga Perkasa and Visa 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 Visa Class A are associated (or correlated) with Jasuindo Tiga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasuindo Tiga Perkasa has no effect on the direction of Visa i.e., Visa and Jasuindo Tiga go up and down completely randomly.
Pair Corralation between Visa and Jasuindo Tiga
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.69 times more return on investment than Jasuindo Tiga. However, Visa Class A is 1.44 times less risky than Jasuindo Tiga. It trades about 0.11 of its potential returns per unit of risk. Jasuindo Tiga Perkasa is currently generating about -0.11 per unit of risk. If you would invest 28,992 in Visa Class A on September 16, 2024 and sell it today you would earn a total of 2,482 from holding Visa Class A or generate 8.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Visa Class A vs. Jasuindo Tiga Perkasa
Performance |
Timeline |
Visa Class A |
Jasuindo Tiga Perkasa |
Visa and Jasuindo Tiga Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Jasuindo Tiga
The main advantage of trading using opposite Visa and Jasuindo Tiga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jasuindo Tiga 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 Jasuindo Tiga will offset losses from the drop in Jasuindo Tiga's long position.The idea behind Visa Class A and Jasuindo Tiga Perkasa 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.Jasuindo Tiga vs. PT Indonesia Kendaraan | Jasuindo Tiga vs. Surya Toto Indonesia | Jasuindo Tiga vs. Mitra Pinasthika Mustika | Jasuindo Tiga vs. Integra Indocabinet 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |