Correlation Between Asuransi Harta and Mnc Kapital
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Mnc Kapital 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 Mnc Kapital 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 Mnc Kapital Indonesia, you can compare the effects of market volatilities on Asuransi Harta and Mnc Kapital 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 Mnc Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Mnc Kapital.
Diversification Opportunities for Asuransi Harta and Mnc Kapital
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Mnc is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Mnc Kapital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Kapital 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 Mnc Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Kapital Indonesia has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Mnc Kapital go up and down completely randomly.
Pair Corralation between Asuransi Harta and Mnc Kapital
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 0.41 times more return on investment than Mnc Kapital. However, Asuransi Harta Aman is 2.43 times less risky than Mnc Kapital. It trades about -0.22 of its potential returns per unit of risk. Mnc Kapital Indonesia is currently generating about -0.12 per unit of risk. If you would invest 10,400 in Asuransi Harta Aman on August 29, 2024 and sell it today you would lose (1,000.00) from holding Asuransi Harta Aman or give up 9.62% 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. Mnc Kapital Indonesia
Performance |
| Timeline |
| Asuransi Harta Aman |
| Mnc Kapital Indonesia |
Asuransi Harta and Mnc Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Mnc Kapital
The main advantage of trading using opposite Asuransi Harta and Mnc Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Mnc Kapital 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 Mnc Kapital will offset losses from the drop in Mnc Kapital'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 |
| Mnc Kapital vs. Diamond Food Indonesia | Mnc Kapital vs. Cisarua Mountain Dairy | Mnc Kapital vs. Tera Data Indonusa | Mnc Kapital vs. Indofood Cbp Sukses |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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