Correlation Between J Resources and Asuransi Harta

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both J Resources and Asuransi Harta 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 J Resources and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Resources Asia and Asuransi Harta Aman, you can compare the effects of market volatilities on J Resources and Asuransi Harta 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 J Resources with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Resources and Asuransi Harta.

Diversification Opportunities for J Resources and Asuransi Harta

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between PSAB and Asuransi is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding J Resources Asia and Asuransi Harta Aman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Harta Aman and J Resources 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 J Resources Asia are associated (or correlated) with Asuransi Harta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Harta Aman has no effect on the direction of J Resources i.e., J Resources and Asuransi Harta go up and down completely randomly.

Pair Corralation between J Resources and Asuransi Harta

Assuming the 90 days trading horizon J Resources Asia is expected to generate 2.86 times more return on investment than Asuransi Harta. However, J Resources is 2.86 times more volatile than Asuransi Harta Aman. It trades about 0.1 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.2 per unit of risk. If you would invest  23,000  in J Resources Asia on September 3, 2024 and sell it today you would earn a total of  7,200  from holding J Resources Asia or generate 31.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

J Resources Asia  vs.  Asuransi Harta Aman

 Performance 
       Timeline  
J Resources Asia 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in J Resources Asia are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, J Resources disclosed solid returns over the last few months and may actually be approaching a breakup point.
Asuransi Harta Aman 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Asuransi Harta Aman has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

J Resources and Asuransi Harta Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with J Resources and Asuransi Harta

The main advantage of trading using opposite J Resources and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Resources position performs unexpectedly, Asuransi Harta 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 Asuransi Harta will offset losses from the drop in Asuransi Harta's long position.
The idea behind J Resources Asia and Asuransi Harta Aman 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.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Share Portfolio
Track or share privately all of your investments from the convenience of any device