Correlation Analysis Between Straits Tms and Jakarta Comp

This module allows you to analyze existing cross correlation between Straits Tms and Jakarta Comp. You can compare the effects of market volatilities on Straits Tms and Jakarta Comp 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 Straits Tms with a short position of Jakarta Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of Straits Tms and Jakarta Comp.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

Straits Tms  vs.  Jakarta Comp

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Straits Tms is expected to generate 0.75 times more return on investment than Jakarta Comp. However, Straits Tms is 1.33 times less risky than Jakarta Comp. It trades about -0.14 of its potential returns per unit of risk. Jakarta Comp is currently generating about -0.12 per unit of risk. If you would invest  334,864  in Straits Tms on May 17, 2019 and sell it today you would lose (12,601)  from holding Straits Tms or give up 3.76% of portfolio value over 30 days.

Pair Corralation between Straits Tms and Jakarta Comp

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Straits Tms and Jakarta Comp

Straits Tms diversification synergy

Very poor diversification

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