Correlation Between Asuransi Multi and Asuransi Bintang
Can any of the company-specific risk be diversified away by investing in both Asuransi Multi and Asuransi Bintang 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 Bintang 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 Bintang Tbk, you can compare the effects of market volatilities on Asuransi Multi and Asuransi Bintang 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 Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Multi and Asuransi Bintang.
Diversification Opportunities for Asuransi Multi and Asuransi Bintang
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asuransi and Asuransi is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Multi Artha and Asuransi Bintang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Bintang 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 Asuransi Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Bintang Tbk has no effect on the direction of Asuransi Multi i.e., Asuransi Multi and Asuransi Bintang go up and down completely randomly.
Pair Corralation between Asuransi Multi and Asuransi Bintang
Assuming the 90 days trading horizon Asuransi Multi Artha is expected to generate 0.15 times more return on investment than Asuransi Bintang. However, Asuransi Multi Artha is 6.79 times less risky than Asuransi Bintang. It trades about -0.12 of its potential returns per unit of risk. Asuransi Bintang Tbk is currently generating about -0.28 per unit of risk. If you would invest 34,600 in Asuransi Multi Artha on August 25, 2024 and sell it today you would lose (800.00) from holding Asuransi Multi Artha or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Asuransi Multi Artha vs. Asuransi Bintang Tbk
Performance |
| Timeline |
| Asuransi Multi Artha |
| Asuransi Bintang Tbk |
Asuransi Multi and Asuransi Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Multi and Asuransi Bintang
The main advantage of trading using opposite Asuransi Multi and Asuransi Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Multi position performs unexpectedly, Asuransi Bintang 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 Bintang will offset losses from the drop in Asuransi Bintang's long position.| Asuransi Multi vs. Paninvest Tbk | Asuransi Multi vs. Maskapai Reasuransi Indonesia | Asuransi Multi vs. Panin Sekuritas Tbk | Asuransi Multi vs. Wahana Ottomitra Multiartha |
| Asuransi Bintang vs. Paninvest Tbk | Asuransi Bintang vs. Maskapai Reasuransi Indonesia | Asuransi Bintang vs. Panin Sekuritas Tbk | Asuransi Bintang vs. Wahana Ottomitra Multiartha |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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