Correlation Between Asuransi Bina and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Asuransi Bina and Asuransi Multi 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 Asuransi Bina and Asuransi Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Bina Dana and Asuransi Multi Artha, you can compare the effects of market volatilities on Asuransi Bina and Asuransi Multi 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 Asuransi Bina with a short position of Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bina and Asuransi Multi.
Diversification Opportunities for Asuransi Bina and Asuransi Multi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bina Dana and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha and Asuransi Bina 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 Asuransi Bina Dana are associated (or correlated) with Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Asuransi Bina i.e., Asuransi Bina and Asuransi Multi go up and down completely randomly.
Pair Corralation between Asuransi Bina and Asuransi Multi
If you would invest 406,000 in Asuransi Bina Dana on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Asuransi Bina Dana or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Bina Dana vs. Asuransi Multi Artha
Performance |
| Timeline |
| Asuransi Bina Dana |
| Asuransi Multi Artha |
Asuransi Bina and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bina and Asuransi Multi
The main advantage of trading using opposite Asuransi Bina and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bina position performs unexpectedly, Asuransi Multi 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 Multi will offset losses from the drop in Asuransi Multi's long position.| Asuransi Bina vs. Bank BRISyariah Tbk | Asuransi Bina vs. Ace Hardware Indonesia | Asuransi Bina vs. Merdeka Copper Gold | Asuransi Bina vs. Mitra Pinasthika Mustika |
| Asuransi Multi vs. Bank BRISyariah Tbk | Asuransi Multi vs. Ace Hardware Indonesia | Asuransi Multi vs. Merdeka Copper Gold | Asuransi Multi vs. Mitra Pinasthika Mustika |
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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