Correlation Between Asuransi Harta and City Retail
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Asuransi Harta and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and City Retail.
Diversification Opportunities for Asuransi Harta and City Retail
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Asuransi and City is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and City Retail go up and down completely randomly.
Pair Corralation between Asuransi Harta and City Retail
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 11.58 times more return on investment than City Retail. However, Asuransi Harta is 11.58 times more volatile than City Retail Developments. It trades about 0.05 of its potential returns per unit of risk. City Retail Developments is currently generating about -0.03 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 | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Asuransi Harta Aman vs. City Retail Developments
Performance |
| Timeline |
| Asuransi Harta Aman |
| City Retail Developments |
Asuransi Harta and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and City Retail
The main advantage of trading using opposite Asuransi Harta and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail'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 |
| City Retail vs. Metropolitan Land Tbk | City Retail vs. Bekasi Fajar Industrial | City Retail vs. Greenwood Sejahtera Tbk | City Retail vs. Metropolitan Kentjana 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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