This module allows you to analyze existing cross correlation between Jakarta Comp and Stockholm. You can compare the effects of market volatilities on Jakarta Comp and Stockholm 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 Jakarta Comp with a short position of Stockholm. See also your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Comp and Stockholm.
|Horizon||30 Days Login to change|
Predicted Return Density
Jakarta Comp vs. Stockholm
Assuming 30 trading days horizon, Jakarta Comp is expected to under-perform the Stockholm. But the index apears to be less risky and, when comparing its historical volatility, Jakarta Comp is 1.0 times less risky than Stockholm. The index trades about -0.08 of its potential returns per unit of risk. The Stockholm is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 61,971 in Stockholm on May 19, 2019 and sell it today you would lose (1,696) from holding Stockholm or give up 2.74% of portfolio value over 30 days.
Pair Corralation between Jakarta Comp and Stockholm
|Time Period||2 Months [change]|
Diversification Opportunities for Jakarta Comp and Stockholm
Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Comp and Stockholm in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Stockholm and Jakarta Comp 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 Jakarta Comp are associated (or correlated) with Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stockholm has no effect on the direction of Jakarta Comp i.e. Jakarta Comp and Stockholm go up and down completely randomly.
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.