Correlation Between Waskita Karya and Jasa Marga

Can any of the company-specific risk be diversified away by investing in both Waskita Karya and Jasa Marga 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 Waskita Karya and Jasa Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Waskita Karya Persero and Jasa Marga Tbk, you can compare the effects of market volatilities on Waskita Karya and Jasa Marga 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 Waskita Karya with a short position of Jasa Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waskita Karya and Jasa Marga.

Diversification Opportunities for Waskita Karya and Jasa Marga

0.0

Correlation Coefficient

Waskita Karya  Jasa Marga

Pay attention - limited upside

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

Pair Corralation between Waskita Karya and Jasa Marga

If you would invest  20,200  in Waskita Karya Persero on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Waskita Karya Persero or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Waskita Karya Persero  vs.  Jasa Marga Tbk

Waskita Karya Persero

Risk-Adjusted Performance

Very Weak

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

Jasa Marga Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jasa Marga Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Waskita Karya and Jasa Marga

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

The idea behind Waskita Karya Persero and Jasa Marga Tbk 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..