Correlation Between Asuransi Harta and Metropolitan Kentjana
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Metropolitan Kentjana 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 Metropolitan Kentjana 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 Metropolitan Kentjana Tbk, you can compare the effects of market volatilities on Asuransi Harta and Metropolitan Kentjana 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 Metropolitan Kentjana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Metropolitan Kentjana.
Diversification Opportunities for Asuransi Harta and Metropolitan Kentjana
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Metropolitan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Metropolitan Kentjana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Kentjana Tbk 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 Metropolitan Kentjana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Kentjana Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Metropolitan Kentjana go up and down completely randomly.
Pair Corralation between Asuransi Harta and Metropolitan Kentjana
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 3.65 times more return on investment than Metropolitan Kentjana. However, Asuransi Harta is 3.65 times more volatile than Metropolitan Kentjana Tbk. It trades about 0.05 of its potential returns per unit of risk. Metropolitan Kentjana Tbk is currently generating about 0.01 per unit of risk. If you would invest 5,500 in Asuransi Harta Aman on September 4, 2024 and sell it today you would earn a total of 3,800 from holding Asuransi Harta Aman or generate 69.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Metropolitan Kentjana Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Metropolitan Kentjana Tbk |
Asuransi Harta and Metropolitan Kentjana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Metropolitan Kentjana
The main advantage of trading using opposite Asuransi Harta and Metropolitan Kentjana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Metropolitan Kentjana 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 Metropolitan Kentjana will offset losses from the drop in Metropolitan Kentjana'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 |
| Metropolitan Kentjana vs. Jaya Real Property | Metropolitan Kentjana vs. Metropolitan Land Tbk | Metropolitan Kentjana vs. Duta Pertiwi Tbk | Metropolitan Kentjana vs. Indonesia Prima Property |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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