Correlation Between Asuransi Multi and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Asuransi Multi 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 Asuransi Multi and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Multi Artha and Asuransi Harta Aman, you can compare the effects of market volatilities on Asuransi Multi 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 Asuransi Multi with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Multi and Asuransi Harta.
Diversification Opportunities for Asuransi Multi and Asuransi Harta
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Multi Artha 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 Asuransi Multi 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 Multi Artha 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 Asuransi Multi i.e., Asuransi Multi and Asuransi Harta go up and down completely randomly.
Pair Corralation between Asuransi Multi and Asuransi Harta
Assuming the 90 days trading horizon Asuransi Multi Artha is expected to generate 0.69 times more return on investment than Asuransi Harta. However, Asuransi Multi Artha is 1.46 times less risky than Asuransi Harta. It trades about 0.15 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.19 per unit of risk. If you would invest 33,000 in Asuransi Multi Artha on November 4, 2024 and sell it today you would earn a total of 800.00 from holding Asuransi Multi Artha or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Multi Artha vs. Asuransi Harta Aman
Performance |
| Timeline |
| Asuransi Multi Artha |
| Asuransi Harta Aman |
Asuransi Multi and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Multi and Asuransi Harta
The main advantage of trading using opposite Asuransi Multi and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Multi 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.| Asuransi Multi vs. Asuransi Bina Dana | Asuransi Multi vs. Asuransi Dayin Mitra | Asuransi Multi vs. Clipan Finance Indonesia | Asuransi Multi vs. Asuransi Harta Aman |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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