Correlation Between Asuransi Harta and Malacca Trust
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Malacca Trust 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 Malacca Trust 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 Malacca Trust Wuwungan, you can compare the effects of market volatilities on Asuransi Harta and Malacca Trust 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 Malacca Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Malacca Trust.
Diversification Opportunities for Asuransi Harta and Malacca Trust
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asuransi and Malacca is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Malacca Trust Wuwungan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Trust Wuwungan 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 Malacca Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Trust Wuwungan has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Malacca Trust go up and down completely randomly.
Pair Corralation between Asuransi Harta and Malacca Trust
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Malacca Trust. In addition to that, Asuransi Harta is 1.04 times more volatile than Malacca Trust Wuwungan. It trades about -0.18 of its total potential returns per unit of risk. Malacca Trust Wuwungan is currently generating about 0.19 per unit of volatility. If you would invest 15,600 in Malacca Trust Wuwungan on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Malacca Trust Wuwungan or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Malacca Trust Wuwungan
Performance |
| Timeline |
| Asuransi Harta Aman |
| Malacca Trust Wuwungan |
Asuransi Harta and Malacca Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Malacca Trust
The main advantage of trading using opposite Asuransi Harta and Malacca Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Malacca Trust 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 Malacca Trust will offset losses from the drop in Malacca Trust'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 |
| Malacca Trust vs. Bank Cimb Niaga | Malacca Trust vs. Indosat Tbk | Malacca Trust vs. Astra Agro Lestari | Malacca Trust vs. Bank Mandiri Persero |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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