Correlation Between Asuransi Harta and Trisula International
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Trisula International 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 Trisula International 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 Trisula International Tbk, you can compare the effects of market volatilities on Asuransi Harta and Trisula International 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 Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Trisula International.
Diversification Opportunities for Asuransi Harta and Trisula International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Trisula is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Trisula International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula International 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 Trisula International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula International Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Trisula International go up and down completely randomly.
Pair Corralation between Asuransi Harta and Trisula International
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Trisula International. But the stock apears to be less risky and, when comparing its historical volatility, Asuransi Harta Aman is 1.01 times less risky than Trisula International. The stock trades about -0.16 of its potential returns per unit of risk. The Trisula International Tbk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 17,200 in Trisula International Tbk on September 13, 2024 and sell it today you would earn a total of 600.00 from holding Trisula International Tbk or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Trisula International Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Trisula International Tbk |
Asuransi Harta and Trisula International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Trisula International
The main advantage of trading using opposite Asuransi Harta and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Trisula International 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 Trisula International will offset losses from the drop in Trisula International'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 |
| Trisula International vs. Pembangunan Graha Lestari | Trisula International vs. Pembangunan Jaya Ancol | Trisula International vs. Hotel Sahid Jaya | Trisula International vs. Mitrabara Adiperdana PT |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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