Correlation Between Japfa Comfeed and Media Nusantara
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and Media Nusantara 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 Japfa Comfeed and Media Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japfa Comfeed Indonesia and Media Nusantara Citra, you can compare the effects of market volatilities on Japfa Comfeed and Media Nusantara 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 Japfa Comfeed with a short position of Media Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and Media Nusantara.
Diversification Opportunities for Japfa Comfeed and Media Nusantara
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japfa and Media is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and Media Nusantara Citra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Nusantara Citra and Japfa Comfeed 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 Japfa Comfeed Indonesia are associated (or correlated) with Media Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Nusantara Citra has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and Media Nusantara go up and down completely randomly.
Pair Corralation between Japfa Comfeed and Media Nusantara
Assuming the 90 days trading horizon Japfa Comfeed Indonesia is expected to generate 0.83 times more return on investment than Media Nusantara. However, Japfa Comfeed Indonesia is 1.21 times less risky than Media Nusantara. It trades about 0.11 of its potential returns per unit of risk. Media Nusantara Citra is currently generating about -0.03 per unit of risk. If you would invest 111,897 in Japfa Comfeed Indonesia on September 25, 2024 and sell it today you would earn a total of 78,103 from holding Japfa Comfeed Indonesia or generate 69.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Japfa Comfeed Indonesia vs. Media Nusantara Citra
Performance |
Timeline |
Japfa Comfeed Indonesia |
Media Nusantara Citra |
Japfa Comfeed and Media Nusantara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Japfa Comfeed and Media Nusantara
The main advantage of trading using opposite Japfa Comfeed and Media Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, Media Nusantara 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 Media Nusantara will offset losses from the drop in Media Nusantara's long position.Japfa Comfeed vs. Sariguna Primatirta PT | Japfa Comfeed vs. Ultra Jaya Milk | Japfa Comfeed vs. Nippon Indosari Corpindo | Japfa Comfeed vs. Kino Indonesia Tbk |
Media Nusantara vs. Tower Bersama Infrastructure | Media Nusantara vs. Merdeka Copper Gold | Media Nusantara vs. Japfa Comfeed Indonesia | Media Nusantara vs. Indofood Cbp Sukses |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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