Correlation Between Asuransi Harta and Soechi Lines
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Soechi Lines 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 Soechi Lines 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 Soechi Lines Tbk, you can compare the effects of market volatilities on Asuransi Harta and Soechi Lines 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 Soechi Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Soechi Lines.
Diversification Opportunities for Asuransi Harta and Soechi Lines
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asuransi and Soechi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Soechi Lines Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soechi Lines 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 Soechi Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soechi Lines Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Soechi Lines go up and down completely randomly.
Pair Corralation between Asuransi Harta and Soechi Lines
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 2.62 times more return on investment than Soechi Lines. However, Asuransi Harta is 2.62 times more volatile than Soechi Lines Tbk. It trades about 0.03 of its potential returns per unit of risk. Soechi Lines Tbk is currently generating about 0.0 per unit of risk. If you would invest 8,100 in Asuransi Harta Aman on September 12, 2024 and sell it today you would earn a total of 1,200 from holding Asuransi Harta Aman or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Soechi Lines Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Soechi Lines Tbk |
Asuransi Harta and Soechi Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Soechi Lines
The main advantage of trading using opposite Asuransi Harta and Soechi Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Soechi Lines 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 Soechi Lines will offset losses from the drop in Soechi Lines' 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 |
| Soechi Lines vs. Harum Energy Tbk | Soechi Lines vs. Delta Dunia Makmur | Soechi Lines vs. Adi Sarana Armada | Soechi Lines vs. Elang Mahkota Teknologi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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