Correlation Between Asuransi Harta and Benakat Petroleum
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Benakat Petroleum 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 Benakat Petroleum 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 Benakat Petroleum Energy, you can compare the effects of market volatilities on Asuransi Harta and Benakat Petroleum 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 Benakat Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Benakat Petroleum.
Diversification Opportunities for Asuransi Harta and Benakat Petroleum
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Benakat is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Benakat Petroleum Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benakat Petroleum Energy 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 Benakat Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benakat Petroleum Energy has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Benakat Petroleum go up and down completely randomly.
Pair Corralation between Asuransi Harta and Benakat Petroleum
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 1.33 times more return on investment than Benakat Petroleum. However, Asuransi Harta is 1.33 times more volatile than Benakat Petroleum Energy. It trades about 0.03 of its potential returns per unit of risk. Benakat Petroleum Energy is currently generating about -0.03 per unit of risk. If you would invest 7,900 in Asuransi Harta Aman on September 3, 2024 and sell it today you would earn a total of 1,400 from holding Asuransi Harta Aman or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Benakat Petroleum Energy
Performance |
| Timeline |
| Asuransi Harta Aman |
| Benakat Petroleum Energy |
Asuransi Harta and Benakat Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Benakat Petroleum
The main advantage of trading using opposite Asuransi Harta and Benakat Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Benakat Petroleum 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 Benakat Petroleum will offset losses from the drop in Benakat Petroleum'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 |
| Benakat Petroleum vs. Weha Transportasi Indonesia | Benakat Petroleum vs. Mitra Pinasthika Mustika | Benakat Petroleum vs. Jakarta Int Hotels | Benakat Petroleum 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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