Correlation Between Bank Amar and Ashmore Asset
Can any of the company-specific risk be diversified away by investing in both Bank Amar and Ashmore Asset 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 Bank Amar and Ashmore Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Amar Indonesia and Ashmore Asset Management, you can compare the effects of market volatilities on Bank Amar and Ashmore Asset 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 Bank Amar with a short position of Ashmore Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Amar and Ashmore Asset.
Diversification Opportunities for Bank Amar and Ashmore Asset
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Ashmore is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank Amar Indonesia and Ashmore Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Asset Management and Bank Amar 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 Bank Amar Indonesia are associated (or correlated) with Ashmore Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Asset Management has no effect on the direction of Bank Amar i.e., Bank Amar and Ashmore Asset go up and down completely randomly.
Pair Corralation between Bank Amar and Ashmore Asset
Assuming the 90 days trading horizon Bank Amar Indonesia is expected to generate 0.77 times more return on investment than Ashmore Asset. However, Bank Amar Indonesia is 1.3 times less risky than Ashmore Asset. It trades about -0.16 of its potential returns per unit of risk. Ashmore Asset Management is currently generating about -0.47 per unit of risk. If you would invest 21,400 in Bank Amar Indonesia on August 28, 2024 and sell it today you would lose (1,200) from holding Bank Amar Indonesia or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Amar Indonesia vs. Ashmore Asset Management
Performance |
| Timeline |
| Bank Amar Indonesia |
| Ashmore Asset Management |
Bank Amar and Ashmore Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Amar and Ashmore Asset
The main advantage of trading using opposite Bank Amar and Ashmore Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Amar position performs unexpectedly, Ashmore Asset 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 Ashmore Asset will offset losses from the drop in Ashmore Asset's long position.| Bank Amar vs. Bank Artos Indonesia | Bank Amar vs. Bank Yudha Bhakti | Bank Amar vs. Bk Harda Internasional | Bank Amar vs. Bank Rakyat Indonesia |
| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mahaka Radio Integra | Ashmore Asset vs. Ateliers Mecaniques DIndonesie |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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