Correlation Between Asuransi Harta and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Maming Enam 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 Harta and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Harta Aman and Maming Enam Sembilan, you can compare the effects of market volatilities on Asuransi Harta and Maming Enam 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 Harta with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Maming Enam.
Diversification Opportunities for Asuransi Harta and Maming Enam
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asuransi and Maming is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Asuransi Harta 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 Harta Aman are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Maming Enam go up and down completely randomly.
Pair Corralation between Asuransi Harta and Maming Enam
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 0.42 times more return on investment than Maming Enam. However, Asuransi Harta Aman is 2.38 times less risky than Maming Enam. It trades about -0.18 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.2 per unit of risk. If you would invest 10,200 in Asuransi Harta Aman on August 30, 2024 and sell it today you would lose (800.00) from holding Asuransi Harta Aman or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Maming Enam Sembilan
Performance |
| Timeline |
| Asuransi Harta Aman |
| Maming Enam Sembilan |
Asuransi Harta and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Maming Enam
The main advantage of trading using opposite Asuransi Harta and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Asuransi Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta vs. Asuransi Jasa Tania |
| Maming Enam vs. Indosterling Technomedia Tbk | Maming Enam vs. Ciptadana Asset Management | Maming Enam vs. Enseval Putra Megatrading | Maming Enam vs. Victoria Insurance Tbk |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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