Correlation Between Jaya Sukses and Modernland Realty
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Modernland Realty 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 Jaya Sukses and Modernland Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Sukses Makmur and Modernland Realty Ltd, you can compare the effects of market volatilities on Jaya Sukses and Modernland Realty 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 Jaya Sukses with a short position of Modernland Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Modernland Realty.
Diversification Opportunities for Jaya Sukses and Modernland Realty
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Modernland is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Modernland Realty Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modernland Realty and Jaya Sukses 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 Jaya Sukses Makmur are associated (or correlated) with Modernland Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modernland Realty has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Modernland Realty go up and down completely randomly.
Pair Corralation between Jaya Sukses and Modernland Realty
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to generate 0.27 times more return on investment than Modernland Realty. However, Jaya Sukses Makmur is 3.65 times less risky than Modernland Realty. It trades about 0.07 of its potential returns per unit of risk. Modernland Realty Ltd is currently generating about 0.0 per unit of risk. If you would invest 98,500 in Jaya Sukses Makmur on September 26, 2024 and sell it today you would earn a total of 3,000 from holding Jaya Sukses Makmur or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Jaya Sukses Makmur vs. Modernland Realty Ltd
Performance |
Timeline |
Jaya Sukses Makmur |
Modernland Realty |
Jaya Sukses and Modernland Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jaya Sukses and Modernland Realty
The main advantage of trading using opposite Jaya Sukses and Modernland Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Modernland Realty 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 Modernland Realty will offset losses from the drop in Modernland Realty's long position.Jaya Sukses vs. Petrosea Tbk | Jaya Sukses vs. Soechi Lines Tbk | Jaya Sukses vs. Wintermar Offshore Marine | Jaya Sukses vs. Indika Energy 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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