Correlation Between Asuransi Harta and Jakarta Int
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Jakarta Int 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 Jakarta Int 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 Jakarta Int Hotels, you can compare the effects of market volatilities on Asuransi Harta and Jakarta Int 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 Jakarta Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Jakarta Int.
Diversification Opportunities for Asuransi Harta and Jakarta Int
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Jakarta is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Jakarta Int Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakarta Int Hotels 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 Jakarta Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakarta Int Hotels has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Jakarta Int go up and down completely randomly.
Pair Corralation between Asuransi Harta and Jakarta Int
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Jakarta Int. But the stock apears to be less risky and, when comparing its historical volatility, Asuransi Harta Aman is 5.36 times less risky than Jakarta Int. The stock trades about -0.16 of its potential returns per unit of risk. The Jakarta Int Hotels is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 95,000 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 202,000 from holding Jakarta Int Hotels or generate 212.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Jakarta Int Hotels
Performance |
| Timeline |
| Asuransi Harta Aman |
| Jakarta Int Hotels |
Asuransi Harta and Jakarta Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Jakarta Int
The main advantage of trading using opposite Asuransi Harta and Jakarta Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Jakarta Int 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 Jakarta Int will offset losses from the drop in Jakarta Int'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 |
| Jakarta Int vs. Jaya Real Property | Jakarta Int vs. Mnc Land Tbk | Jakarta Int vs. Kawasan Industri Jababeka | Jakarta Int vs. Duta Pertiwi 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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