Correlation Between Asuransi Harta and Asuransi Jasa
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Asuransi Jasa 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 Asuransi Jasa 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 Asuransi Jasa Tania, you can compare the effects of market volatilities on Asuransi Harta and Asuransi Jasa 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 Asuransi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Asuransi Jasa.
Diversification Opportunities for Asuransi Harta and Asuransi Jasa
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Asuransi Jasa Tania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Jasa Tania 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 Asuransi Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Jasa Tania has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Asuransi Jasa go up and down completely randomly.
Pair Corralation between Asuransi Harta and Asuransi Jasa
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Asuransi Jasa. But the stock apears to be less risky and, when comparing its historical volatility, Asuransi Harta Aman is 1.09 times less risky than Asuransi Jasa. The stock trades about -0.19 of its potential returns per unit of risk. The Asuransi Jasa Tania is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,100 in Asuransi Jasa Tania on November 4, 2024 and sell it today you would lose (100.00) from holding Asuransi Jasa Tania or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Asuransi Jasa Tania
Performance |
| Timeline |
| Asuransi Harta Aman |
| Asuransi Jasa Tania |
Asuransi Harta and Asuransi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Asuransi Jasa
The main advantage of trading using opposite Asuransi Harta and Asuransi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Asuransi Jasa 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 Jasa will offset losses from the drop in Asuransi Jasa'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 |
| Asuransi Jasa vs. Asuransi Bintang Tbk | Asuransi Jasa vs. Asuransi Ramayana Tbk | Asuransi Jasa vs. Asuransi Harta Aman | Asuransi Jasa vs. Asuransi Dayin Mitra |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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