Correlation Between Asuransi Harta and Roda Vivatex
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Roda Vivatex 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 Roda Vivatex 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 Roda Vivatex Tbk, you can compare the effects of market volatilities on Asuransi Harta and Roda Vivatex 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 Roda Vivatex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Roda Vivatex.
Diversification Opportunities for Asuransi Harta and Roda Vivatex
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asuransi and Roda is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Roda Vivatex Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roda Vivatex 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 Roda Vivatex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roda Vivatex Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Roda Vivatex go up and down completely randomly.
Pair Corralation between Asuransi Harta and Roda Vivatex
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Roda Vivatex. In addition to that, Asuransi Harta is 1.01 times more volatile than Roda Vivatex Tbk. It trades about -0.18 of its total potential returns per unit of risk. Roda Vivatex Tbk is currently generating about -0.1 per unit of volatility. If you would invest 1,460,000 in Roda Vivatex Tbk on September 12, 2024 and sell it today you would lose (60,000) from holding Roda Vivatex Tbk or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Roda Vivatex Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Roda Vivatex Tbk |
Asuransi Harta and Roda Vivatex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Roda Vivatex
The main advantage of trading using opposite Asuransi Harta and Roda Vivatex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Roda Vivatex 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 Roda Vivatex will offset losses from the drop in Roda Vivatex's long position.| Asuransi Harta vs. Paninvest Tbk | Asuransi Harta vs. Maskapai Reasuransi Indonesia | Asuransi Harta vs. Panin Sekuritas Tbk | Asuransi Harta vs. Wahana Ottomitra Multiartha |
| Roda Vivatex vs. Supreme Cable Manufacturing | Roda Vivatex vs. Ristia Bintang Mahkotasejati | Roda Vivatex vs. Ricky Putra Globalindo | Roda Vivatex vs. Suryamas Dutamakmur 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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