Correlation Between Asuransi Harta and Timah Persero
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Timah Persero 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 Timah Persero 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 Timah Persero Tbk, you can compare the effects of market volatilities on Asuransi Harta and Timah Persero 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 Timah Persero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Timah Persero.
Diversification Opportunities for Asuransi Harta and Timah Persero
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asuransi and Timah is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Timah Persero Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timah Persero 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 Timah Persero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timah Persero Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Timah Persero go up and down completely randomly.
Pair Corralation between Asuransi Harta and Timah Persero
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 0.48 times more return on investment than Timah Persero. However, Asuransi Harta Aman is 2.1 times less risky than Timah Persero. It trades about -0.14 of its potential returns per unit of risk. Timah Persero Tbk is currently generating about -0.24 per unit of risk. If you would invest 9,700 in Asuransi Harta Aman on September 5, 2024 and sell it today you would lose (600.00) from holding Asuransi Harta Aman or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Timah Persero Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Timah Persero Tbk |
Asuransi Harta and Timah Persero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Timah Persero
The main advantage of trading using opposite Asuransi Harta and Timah Persero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Timah Persero 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 Timah Persero will offset losses from the drop in Timah Persero'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 |
| Timah Persero vs. Mitra Pinasthika Mustika | Timah Persero vs. Jakarta Int Hotels | Timah Persero vs. Asuransi Harta Aman | Timah Persero vs. Indosterling Technomedia 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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