Correlation Between Asuransi Bina and Maskapai Reasuransi
Can any of the company-specific risk be diversified away by investing in both Asuransi Bina and Maskapai Reasuransi 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 Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia, you can compare the effects of market volatilities on Asuransi Bina and Maskapai Reasuransi 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 Maskapai Reasuransi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bina and Maskapai Reasuransi.
Diversification Opportunities for Asuransi Bina and Maskapai Reasuransi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asuransi and Maskapai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bina Dana and Maskapai Reasuransi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maskapai Reasuransi 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 Maskapai Reasuransi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maskapai Reasuransi has no effect on the direction of Asuransi Bina i.e., Asuransi Bina and Maskapai Reasuransi go up and down completely randomly.
Pair Corralation between Asuransi Bina and Maskapai Reasuransi
If you would invest 406,000 in Asuransi Bina Dana on August 26, 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 | 90.91% |
| Values | Daily Returns |
Asuransi Bina Dana vs. Maskapai Reasuransi Indonesia
Performance |
| Timeline |
| Asuransi Bina Dana |
| Maskapai Reasuransi |
Asuransi Bina and Maskapai Reasuransi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bina and Maskapai Reasuransi
The main advantage of trading using opposite Asuransi Bina and Maskapai Reasuransi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bina position performs unexpectedly, Maskapai Reasuransi 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 Maskapai Reasuransi will offset losses from the drop in Maskapai Reasuransi's long position.| Asuransi Bina vs. Paninvest Tbk | Asuransi Bina vs. Maskapai Reasuransi Indonesia | Asuransi Bina vs. Panin Sekuritas Tbk | Asuransi Bina vs. Wahana Ottomitra Multiartha |
| Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Panin Sekuritas Tbk | Maskapai Reasuransi vs. Wahana Ottomitra Multiartha | Maskapai Reasuransi vs. Lenox Pasifik Investama |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |