Correlation Between Asuransi Harta and Tifico Fiber
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Tifico Fiber 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 Tifico Fiber 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 Tifico Fiber Indonesia, you can compare the effects of market volatilities on Asuransi Harta and Tifico Fiber 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 Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Tifico Fiber.
Diversification Opportunities for Asuransi Harta and Tifico Fiber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Tifico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia 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 Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Tifico Fiber go up and down completely randomly.
Pair Corralation between Asuransi Harta and Tifico Fiber
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 35.02 times more return on investment than Tifico Fiber. However, Asuransi Harta is 35.02 times more volatile than Tifico Fiber Indonesia. It trades about 0.03 of its potential returns per unit of risk. Tifico Fiber Indonesia is currently generating about -0.15 per unit of risk. If you would invest 9,100 in Asuransi Harta Aman on September 4, 2024 and sell it today you would earn a total of 200.00 from holding Asuransi Harta Aman or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Tifico Fiber Indonesia
Performance |
| Timeline |
| Asuransi Harta Aman |
| Tifico Fiber Indonesia |
Asuransi Harta and Tifico Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Tifico Fiber
The main advantage of trading using opposite Asuransi Harta and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber'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 |
| Tifico Fiber vs. Jakarta Int Hotels | Tifico Fiber vs. Asuransi Harta Aman | Tifico Fiber vs. Indosterling Technomedia Tbk | Tifico Fiber vs. Indosat 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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