Correlation Between Jacquet Metal and PT Indosat
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and PT Indosat 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 Jacquet Metal and PT Indosat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and PT Indosat Tbk, you can compare the effects of market volatilities on Jacquet Metal and PT Indosat 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 Jacquet Metal with a short position of PT Indosat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and PT Indosat.
Diversification Opportunities for Jacquet Metal and PT Indosat
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and IDO1 is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and PT Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indosat Tbk and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with PT Indosat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indosat Tbk has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and PT Indosat go up and down completely randomly.
Pair Corralation between Jacquet Metal and PT Indosat
Assuming the 90 days horizon Jacquet Metal is expected to generate 1.01 times less return on investment than PT Indosat. But when comparing it to its historical volatility, Jacquet Metal Service is 4.96 times less risky than PT Indosat. It trades about 0.2 of its potential returns per unit of risk. PT Indosat Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13.00 in PT Indosat Tbk on September 26, 2024 and sell it today you would earn a total of 0.00 from holding PT Indosat Tbk or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jacquet Metal Service vs. PT Indosat Tbk
Performance |
Timeline |
Jacquet Metal Service |
PT Indosat Tbk |
Jacquet Metal and PT Indosat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacquet Metal and PT Indosat
The main advantage of trading using opposite Jacquet Metal and PT Indosat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, PT Indosat 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 PT Indosat will offset losses from the drop in PT Indosat's long position.Jacquet Metal vs. AGNC INVESTMENT | Jacquet Metal vs. REINET INVESTMENTS SCA | Jacquet Metal vs. Hochschild Mining plc | Jacquet Metal vs. Scientific Games |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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