Correlation Between Asuransi Harta and Capital Financial
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Capital Financial 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 Capital Financial 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 Capital Financial Indonesia, you can compare the effects of market volatilities on Asuransi Harta and Capital Financial 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 Capital Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Capital Financial.
Diversification Opportunities for Asuransi Harta and Capital Financial
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asuransi and Capital is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Capital Financial Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Financial 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 Capital Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Financial has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Capital Financial go up and down completely randomly.
Pair Corralation between Asuransi Harta and Capital Financial
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Capital Financial. In addition to that, Asuransi Harta is 1.03 times more volatile than Capital Financial Indonesia. It trades about -0.18 of its total potential returns per unit of risk. Capital Financial Indonesia is currently generating about -0.15 per unit of volatility. If you would invest 54,500 in Capital Financial Indonesia on August 31, 2024 and sell it today you would lose (3,500) from holding Capital Financial Indonesia or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Capital Financial Indonesia
Performance |
| Timeline |
| Asuransi Harta Aman |
| Capital Financial |
Asuransi Harta and Capital Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Capital Financial
The main advantage of trading using opposite Asuransi Harta and Capital Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Capital Financial 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 Capital Financial will offset losses from the drop in Capital Financial'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 |
| Capital Financial vs. Bank BRISyariah Tbk | Capital Financial vs. Ace Hardware Indonesia | Capital Financial vs. Merdeka Copper Gold | Capital Financial vs. Mitra Pinasthika Mustika |
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 Stocks Directory module to find actively traded stocks across global markets.
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