Correlation Between Asuransi Bina and Asuransi Dayin
Can any of the company-specific risk be diversified away by investing in both Asuransi Bina and Asuransi Dayin 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 Dayin 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 Dayin Mitra, you can compare the effects of market volatilities on Asuransi Bina and Asuransi Dayin 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 Dayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bina and Asuransi Dayin.
Diversification Opportunities for Asuransi Bina and Asuransi Dayin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bina Dana and Asuransi Dayin Mitra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Dayin Mitra 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 Dayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Dayin Mitra has no effect on the direction of Asuransi Bina i.e., Asuransi Bina and Asuransi Dayin go up and down completely randomly.
Pair Corralation between Asuransi Bina and Asuransi Dayin
If you would invest 380,000 in Asuransi Bina Dana on November 4, 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 | 89.47% |
| Values | Daily Returns |
Asuransi Bina Dana vs. Asuransi Dayin Mitra
Performance |
| Timeline |
| Asuransi Bina Dana |
| Asuransi Dayin Mitra |
Asuransi Bina and Asuransi Dayin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bina and Asuransi Dayin
The main advantage of trading using opposite Asuransi Bina and Asuransi Dayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bina position performs unexpectedly, Asuransi Dayin 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 Dayin will offset losses from the drop in Asuransi Dayin's long position.| Asuransi Bina vs. Asuransi Dayin Mitra | Asuransi Bina vs. Asuransi Harta Aman | Asuransi Bina vs. Asuransi Bintang Tbk | Asuransi Bina vs. Asuransi Ramayana Tbk |
| Asuransi Dayin vs. Asuransi Bintang Tbk | Asuransi Dayin vs. Asuransi Bina Dana | Asuransi Dayin vs. Asuransi Ramayana Tbk | Asuransi Dayin vs. Asuransi Harta Aman |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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