Correlation Between Maming Enam and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Maming Enam and Asuransi Harta 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 Maming Enam and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maming Enam Sembilan and Asuransi Harta Aman, you can compare the effects of market volatilities on Maming Enam and Asuransi Harta 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 Maming Enam with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maming Enam and Asuransi Harta.
Diversification Opportunities for Maming Enam and Asuransi Harta
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maming and Asuransi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maming Enam Sembilan and Asuransi Harta Aman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Harta Aman and Maming Enam 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 Maming Enam Sembilan are associated (or correlated) with Asuransi Harta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Harta Aman has no effect on the direction of Maming Enam i.e., Maming Enam and Asuransi Harta go up and down completely randomly.
Pair Corralation between Maming Enam and Asuransi Harta
Assuming the 90 days trading horizon Maming Enam Sembilan is expected to under-perform the Asuransi Harta. In addition to that, Maming Enam is 2.38 times more volatile than Asuransi Harta Aman. It trades about -0.2 of its total potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.18 per unit of volatility. If you would invest 10,200 in Asuransi Harta Aman on August 30, 2024 and sell it today you would lose (800.00) from holding Asuransi Harta Aman or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maming Enam Sembilan vs. Asuransi Harta Aman
Performance |
| Timeline |
| Maming Enam Sembilan |
| Asuransi Harta Aman |
Maming Enam and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maming Enam and Asuransi Harta
The main advantage of trading using opposite Maming Enam and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maming Enam position performs unexpectedly, Asuransi Harta 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 Asuransi Harta will offset losses from the drop in Asuransi Harta's long position.| Maming Enam vs. Indosterling Technomedia Tbk | Maming Enam vs. Ciptadana Asset Management | Maming Enam vs. Enseval Putra Megatrading | Maming Enam vs. Victoria Insurance Tbk |
| Asuransi Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta vs. Asuransi Jasa Tania |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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