Correlation Between Asuransi Harta and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Pacific Strategic 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 Pacific Strategic 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 Pacific Strategic Financial, you can compare the effects of market volatilities on Asuransi Harta and Pacific Strategic 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 Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Pacific Strategic.
Diversification Opportunities for Asuransi Harta and Pacific Strategic
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asuransi and Pacific is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Pacific Strategic Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Strategic 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 Pacific Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Strategic has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Pacific Strategic go up and down completely randomly.
Pair Corralation between Asuransi Harta and Pacific Strategic
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Pacific Strategic. In addition to that, Asuransi Harta is 2.11 times more volatile than Pacific Strategic Financial. It trades about -0.18 of its total potential returns per unit of risk. Pacific Strategic Financial is currently generating about -0.32 per unit of volatility. If you would invest 108,500 in Pacific Strategic Financial on August 30, 2024 and sell it today you would lose (7,000) from holding Pacific Strategic Financial or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Pacific Strategic Financial
Performance |
| Timeline |
| Asuransi Harta Aman |
| Pacific Strategic |
Asuransi Harta and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Pacific Strategic
The main advantage of trading using opposite Asuransi Harta and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Pacific Strategic 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 Pacific Strategic will offset losses from the drop in Pacific Strategic'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 |
| Pacific Strategic vs. Bank Cimb Niaga | Pacific Strategic vs. Indosat Tbk | Pacific Strategic vs. Astra Agro Lestari | Pacific Strategic vs. Indocement Tunggal Prakarsa |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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