Correlation Between Arthavest Tbk and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Arthavest Tbk and Asuransi Multi 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 Arthavest Tbk and Asuransi Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arthavest Tbk and Asuransi Multi Artha, you can compare the effects of market volatilities on Arthavest Tbk and Asuransi Multi 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 Arthavest Tbk with a short position of Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthavest Tbk and Asuransi Multi.
Diversification Opportunities for Arthavest Tbk and Asuransi Multi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arthavest and Asuransi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Arthavest Tbk and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha and Arthavest Tbk 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 Arthavest Tbk are associated (or correlated) with Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Arthavest Tbk i.e., Arthavest Tbk and Asuransi Multi go up and down completely randomly.
Pair Corralation between Arthavest Tbk and Asuransi Multi
Assuming the 90 days trading horizon Arthavest Tbk is expected to generate 1.19 times more return on investment than Asuransi Multi. However, Arthavest Tbk is 1.19 times more volatile than Asuransi Multi Artha. It trades about 0.04 of its potential returns per unit of risk. Asuransi Multi Artha is currently generating about 0.02 per unit of risk. If you would invest 187,276 in Arthavest Tbk on October 24, 2024 and sell it today you would earn a total of 43,724 from holding Arthavest Tbk or generate 23.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arthavest Tbk vs. Asuransi Multi Artha
Performance |
| Timeline |
| Arthavest Tbk |
| Asuransi Multi Artha |
Arthavest Tbk and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arthavest Tbk and Asuransi Multi
The main advantage of trading using opposite Arthavest Tbk and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arthavest Tbk position performs unexpectedly, Asuransi Multi 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 Multi will offset losses from the drop in Asuransi Multi's long position.| Arthavest Tbk vs. Asuransi Bintang Tbk | Arthavest Tbk vs. Pacific Strategic Financial | Arthavest Tbk vs. Maming Enam Sembilan | Arthavest Tbk vs. Asuransi Harta Aman |
| Asuransi Multi vs. Trimegah Securities Tbk | Asuransi Multi vs. Trust Finance Indonesia | Asuransi Multi vs. Panca Global Securities | Asuransi Multi 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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