Correlation Between Asuransi Harta and Bank Cimb
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Bank Cimb 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 Cimb 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 Cimb Niaga, you can compare the effects of market volatilities on Asuransi Harta and Bank Cimb 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 Cimb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Bank Cimb.
Diversification Opportunities for Asuransi Harta and Bank Cimb
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asuransi and Bank is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Bank Cimb Niaga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Cimb Niaga 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 Cimb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Cimb Niaga has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Bank Cimb go up and down completely randomly.
Pair Corralation between Asuransi Harta and Bank Cimb
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Bank Cimb. In addition to that, Asuransi Harta is 1.74 times more volatile than Bank Cimb Niaga. It trades about -0.18 of its total potential returns per unit of risk. Bank Cimb Niaga is currently generating about -0.02 per unit of volatility. If you would invest 179,000 in Bank Cimb Niaga on September 12, 2024 and sell it today you would lose (1,000.00) from holding Bank Cimb Niaga or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Bank Cimb Niaga
Performance |
| Timeline |
| Asuransi Harta Aman |
| Bank Cimb Niaga |
Asuransi Harta and Bank Cimb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Bank Cimb
The main advantage of trading using opposite Asuransi Harta and Bank Cimb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Bank Cimb 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 Cimb will offset losses from the drop in Bank Cimb's 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 |
| Bank Cimb vs. Bank Danamon Indonesia | Bank Cimb vs. Bank Maybank Indonesia | Bank Cimb vs. Bank Pan Indonesia | Bank Cimb vs. Indosat Tbk |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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