Correlation Between REINET INVESTMENTS and PT Jasa
Can any of the company-specific risk be diversified away by investing in both REINET INVESTMENTS and PT Jasa 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 REINET INVESTMENTS and PT Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REINET INVESTMENTS SCA and PT Jasa Marga, you can compare the effects of market volatilities on REINET INVESTMENTS and PT Jasa 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 REINET INVESTMENTS with a short position of PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and PT Jasa.
Diversification Opportunities for REINET INVESTMENTS and PT Jasa
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between REINET and 0JM is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga and REINET INVESTMENTS 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 REINET INVESTMENTS SCA are associated (or correlated) with PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of REINET INVESTMENTS i.e., REINET INVESTMENTS and PT Jasa go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and PT Jasa
Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to generate 1.17 times more return on investment than PT Jasa. However, REINET INVESTMENTS is 1.17 times more volatile than PT Jasa Marga. It trades about 0.02 of its potential returns per unit of risk. PT Jasa Marga is currently generating about -0.11 per unit of risk. If you would invest 2,320 in REINET INVESTMENTS SCA on September 24, 2024 and sell it today you would earn a total of 0.00 from holding REINET INVESTMENTS SCA 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 |
REINET INVESTMENTS SCA vs. PT Jasa Marga
Performance |
Timeline |
REINET INVESTMENTS SCA |
PT Jasa Marga |
REINET INVESTMENTS and PT Jasa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with REINET INVESTMENTS and PT Jasa
The main advantage of trading using opposite REINET INVESTMENTS and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS position performs unexpectedly, PT Jasa 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 Jasa will offset losses from the drop in PT Jasa's long position.REINET INVESTMENTS vs. Vastned Retail NV | REINET INVESTMENTS vs. SENECA FOODS A | REINET INVESTMENTS vs. Austevoll Seafood ASA | REINET INVESTMENTS vs. RETAIL FOOD GROUP |
PT Jasa vs. GLG LIFE TECH | PT Jasa vs. PKSHA TECHNOLOGY INC | PT Jasa vs. Virtus Investment Partners | PT Jasa vs. REINET INVESTMENTS SCA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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