Correlation Between Arthavest Tbk and Asuransi Bintang
Can any of the company-specific risk be diversified away by investing in both Arthavest Tbk 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 Arthavest Tbk and Asuransi Bintang 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 Bintang Tbk, you can compare the effects of market volatilities on Arthavest Tbk 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 Arthavest Tbk with a short position of Asuransi Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthavest Tbk and Asuransi Bintang.
Diversification Opportunities for Arthavest Tbk and Asuransi Bintang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Arthavest and Asuransi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Arthavest Tbk 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 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 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 Arthavest Tbk i.e., Arthavest Tbk and Asuransi Bintang go up and down completely randomly.
Pair Corralation between Arthavest Tbk and Asuransi Bintang
Assuming the 90 days trading horizon Arthavest Tbk is expected to generate 0.49 times more return on investment than Asuransi Bintang. However, Arthavest Tbk is 2.03 times less risky than Asuransi Bintang. It trades about 0.04 of its potential returns per unit of risk. Asuransi Bintang Tbk is currently generating about 0.0 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 | Very Strong |
| Accuracy | 99.75% |
| Values | Daily Returns |
Arthavest Tbk vs. Asuransi Bintang Tbk
Performance |
| Timeline |
| Arthavest Tbk |
| Asuransi Bintang Tbk |
Arthavest Tbk and Asuransi Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arthavest Tbk and Asuransi Bintang
The main advantage of trading using opposite Arthavest Tbk and Asuransi Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arthavest Tbk 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.| 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 Bintang vs. Asuransi Dayin Mitra | Asuransi Bintang vs. Asuransi Harta Aman | Asuransi Bintang vs. Asuransi Ramayana Tbk | Asuransi Bintang 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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