Correlation Between Asuransi Harta and Trust Finance
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Trust Finance 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 Trust Finance 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 Trust Finance Indonesia, you can compare the effects of market volatilities on Asuransi Harta and Trust Finance 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 Trust Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Trust Finance.
Diversification Opportunities for Asuransi Harta and Trust Finance
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asuransi and Trust is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Trust Finance Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Finance 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 Trust Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Finance Indonesia has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Trust Finance go up and down completely randomly.
Pair Corralation between Asuransi Harta and Trust Finance
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to under-perform the Trust Finance. In addition to that, Asuransi Harta is 1.01 times more volatile than Trust Finance Indonesia. It trades about -0.18 of its total potential returns per unit of risk. Trust Finance Indonesia is currently generating about 0.06 per unit of volatility. If you would invest 43,800 in Trust Finance Indonesia on August 30, 2024 and sell it today you would earn a total of 1,000.00 from holding Trust Finance Indonesia or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Trust Finance Indonesia
Performance |
| Timeline |
| Asuransi Harta Aman |
| Trust Finance Indonesia |
Asuransi Harta and Trust Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Trust Finance
The main advantage of trading using opposite Asuransi Harta and Trust Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Trust Finance 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 Trust Finance will offset losses from the drop in Trust Finance'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 |
| Trust Finance vs. Wahana Ottomitra Multiartha | Trust Finance vs. Yulie Sekurindo Tbk | Trust Finance vs. Trimegah Securities Tbk | Trust Finance vs. Mandala Multifinance 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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