Correlation Between Asuransi Harta and Anabatic Technologies
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Anabatic Technologies 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 Anabatic Technologies 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 Anabatic Technologies Tbk, you can compare the effects of market volatilities on Asuransi Harta and Anabatic Technologies 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 Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Anabatic Technologies.
Diversification Opportunities for Asuransi Harta and Anabatic Technologies
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Asuransi and Anabatic is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk 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 Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Anabatic Technologies go up and down completely randomly.
Pair Corralation between Asuransi Harta and Anabatic Technologies
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 2.47 times more return on investment than Anabatic Technologies. However, Asuransi Harta is 2.47 times more volatile than Anabatic Technologies Tbk. It trades about 0.05 of its potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about 0.01 per unit of risk. If you would invest 5,900 in Asuransi Harta Aman on September 12, 2024 and sell it today you would earn a total of 3,400 from holding Asuransi Harta Aman or generate 57.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Anabatic Technologies Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Anabatic Technologies Tbk |
Asuransi Harta and Anabatic Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Anabatic Technologies
The main advantage of trading using opposite Asuransi Harta and Anabatic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Anabatic Technologies 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 Anabatic Technologies will offset losses from the drop in Anabatic Technologies' long position.| Asuransi Harta vs. Paninvest Tbk | Asuransi Harta vs. Maskapai Reasuransi Indonesia | Asuransi Harta vs. Panin Sekuritas Tbk | Asuransi Harta vs. Wahana Ottomitra Multiartha |
| Anabatic Technologies vs. Multipolar Technology Tbk | Anabatic Technologies vs. Abm Investama Tbk | Anabatic Technologies vs. Arita Prima Indonesia | Anabatic Technologies vs. Bali Towerindo Sentra |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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