Correlation Between Asuransi Harta and Multipolar Technology
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Multipolar Technology 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 Multipolar Technology 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 Multipolar Technology Tbk, you can compare the effects of market volatilities on Asuransi Harta and Multipolar Technology 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 Multipolar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Multipolar Technology.
Diversification Opportunities for Asuransi Harta and Multipolar Technology
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Multipolar is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Multipolar Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multipolar Technology 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 Multipolar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multipolar Technology Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Multipolar Technology go up and down completely randomly.
Pair Corralation between Asuransi Harta and Multipolar Technology
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Multipolar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Asuransi Harta Aman is 6.3 times less risky than Multipolar Technology. The stock trades about -0.1 of its potential returns per unit of risk. The Multipolar Technology Tbk is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,780,000 in Multipolar Technology Tbk on September 4, 2024 and sell it today you would earn a total of 425,000 from holding Multipolar Technology Tbk or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Multipolar Technology Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Multipolar Technology Tbk |
Asuransi Harta and Multipolar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Multipolar Technology
The main advantage of trading using opposite Asuransi Harta and Multipolar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Multipolar Technology 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 Multipolar Technology will offset losses from the drop in Multipolar Technology'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 |
| Multipolar Technology vs. Astra Graphia Tbk | Multipolar Technology vs. Mitra Pinasthika Mustika | Multipolar Technology vs. Jakarta Int Hotels | Multipolar Technology vs. Asuransi Harta Aman |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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