Correlation Between Asuransi Harta and Wahana Ottomitra
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Wahana Ottomitra 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 Wahana Ottomitra 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 Wahana Ottomitra Multiartha, you can compare the effects of market volatilities on Asuransi Harta and Wahana Ottomitra 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 Wahana Ottomitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Wahana Ottomitra.
Diversification Opportunities for Asuransi Harta and Wahana Ottomitra
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Wahana is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Wahana Ottomitra Multiartha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Ottomitra Mul 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 Wahana Ottomitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Ottomitra Mul has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Wahana Ottomitra go up and down completely randomly.
Pair Corralation between Asuransi Harta and Wahana Ottomitra
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 4.05 times more return on investment than Wahana Ottomitra. However, Asuransi Harta is 4.05 times more volatile than Wahana Ottomitra Multiartha. It trades about 0.01 of its potential returns per unit of risk. Wahana Ottomitra Multiartha is currently generating about 0.01 per unit of risk. If you would invest 10,400 in Asuransi Harta Aman on September 12, 2024 and sell it today you would lose (1,100) from holding Asuransi Harta Aman or give up 10.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Wahana Ottomitra Multiartha
Performance |
| Timeline |
| Asuransi Harta Aman |
| Wahana Ottomitra Mul |
Asuransi Harta and Wahana Ottomitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Wahana Ottomitra
The main advantage of trading using opposite Asuransi Harta and Wahana Ottomitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Wahana Ottomitra 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 Wahana Ottomitra will offset losses from the drop in Wahana Ottomitra's 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 |
| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest 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 Stocks Directory module to find actively traded stocks across global markets.
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