Correlation Between Asuransi Harta and Ever Shine
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Ever Shine 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 Ever Shine 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 Ever Shine Textile, you can compare the effects of market volatilities on Asuransi Harta and Ever Shine 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 Ever Shine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Ever Shine.
Diversification Opportunities for Asuransi Harta and Ever Shine
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asuransi and Ever is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Ever Shine Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Shine Textile 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 Ever Shine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Shine Textile has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Ever Shine go up and down completely randomly.
Pair Corralation between Asuransi Harta and Ever Shine
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 1.69 times more return on investment than Ever Shine. However, Asuransi Harta is 1.69 times more volatile than Ever Shine Textile. It trades about 0.03 of its potential returns per unit of risk. Ever Shine Textile is currently generating about 0.0 per unit of risk. If you would invest 9,100 in Asuransi Harta Aman on September 4, 2024 and sell it today you would earn a total of 200.00 from holding Asuransi Harta Aman or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Ever Shine Textile
Performance |
| Timeline |
| Asuransi Harta Aman |
| Ever Shine Textile |
Asuransi Harta and Ever Shine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Ever Shine
The main advantage of trading using opposite Asuransi Harta and Ever Shine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Ever Shine 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 Ever Shine will offset losses from the drop in Ever Shine'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 |
| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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