Correlation Between Asuransi Multi and Arthavest Tbk
Can any of the company-specific risk be diversified away by investing in both Asuransi Multi and Arthavest Tbk 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 Arthavest Tbk 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 Arthavest Tbk, you can compare the effects of market volatilities on Asuransi Multi and Arthavest Tbk 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 Arthavest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Multi and Arthavest Tbk.
Diversification Opportunities for Asuransi Multi and Arthavest Tbk
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asuransi and Arthavest is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Multi Artha and Arthavest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthavest Tbk 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 Arthavest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthavest Tbk has no effect on the direction of Asuransi Multi i.e., Asuransi Multi and Arthavest Tbk go up and down completely randomly.
Pair Corralation between Asuransi Multi and Arthavest Tbk
Assuming the 90 days trading horizon Asuransi Multi Artha is expected to generate 1.36 times more return on investment than Arthavest Tbk. However, Asuransi Multi is 1.36 times more volatile than Arthavest Tbk. It trades about -0.18 of its potential returns per unit of risk. Arthavest Tbk is currently generating about -0.72 per unit of risk. If you would invest 35,000 in Asuransi Multi Artha on August 29, 2024 and sell it today you would lose (1,400) from holding Asuransi Multi Artha or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Multi Artha vs. Arthavest Tbk
Performance |
| Timeline |
| Asuransi Multi Artha |
| Arthavest Tbk |
Asuransi Multi and Arthavest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Multi and Arthavest Tbk
The main advantage of trading using opposite Asuransi Multi and Arthavest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Multi position performs unexpectedly, Arthavest Tbk 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 Arthavest Tbk will offset losses from the drop in Arthavest Tbk'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 |
| Arthavest Tbk vs. Asuransi Bintang Tbk | Arthavest Tbk vs. Pacific Strategic Financial | Arthavest Tbk vs. Maming Enam Sembilan | Arthavest Tbk vs. Asuransi Harta Aman |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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