Correlation Between Asuransi Harta and Bank Capital
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Bank Capital 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 Bank Capital 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 Bank Capital Indonesia, you can compare the effects of market volatilities on Asuransi Harta and Bank Capital 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 Bank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Bank Capital.
Diversification Opportunities for Asuransi Harta and Bank Capital
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asuransi and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Bank Capital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Capital Indonesia 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 Bank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Capital Indonesia has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Bank Capital go up and down completely randomly.
Pair Corralation between Asuransi Harta and Bank Capital
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Bank Capital. In addition to that, Asuransi Harta is 1.8 times more volatile than Bank Capital Indonesia. It trades about -0.14 of its total potential returns per unit of risk. Bank Capital Indonesia is currently generating about -0.03 per unit of volatility. If you would invest 13,100 in Bank Capital Indonesia on September 5, 2024 and sell it today you would lose (100.00) from holding Bank Capital Indonesia or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Bank Capital Indonesia
Performance |
| Timeline |
| Asuransi Harta Aman |
| Bank Capital Indonesia |
Asuransi Harta and Bank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Bank Capital
The main advantage of trading using opposite Asuransi Harta and Bank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Bank Capital 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 Bank Capital will offset losses from the drop in Bank Capital'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 |
| Bank Capital vs. Paninvest Tbk | Bank Capital vs. Mitra Pinasthika Mustika | Bank Capital vs. Jakarta Int Hotels | Bank Capital vs. Asuransi Harta Aman |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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