Correlation Between Asuransi Bintang and Asuransi Bina
Can any of the company-specific risk be diversified away by investing in both Asuransi Bintang and Asuransi Bina 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 Bintang and Asuransi Bina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Bintang Tbk and Asuransi Bina Dana, you can compare the effects of market volatilities on Asuransi Bintang and Asuransi Bina 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 Bintang with a short position of Asuransi Bina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bintang and Asuransi Bina.
Diversification Opportunities for Asuransi Bintang and Asuransi Bina
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asuransi and Asuransi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bintang Tbk and Asuransi Bina Dana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Bina Dana and Asuransi Bintang 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 Bintang Tbk are associated (or correlated) with Asuransi Bina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Bina Dana has no effect on the direction of Asuransi Bintang i.e., Asuransi Bintang and Asuransi Bina go up and down completely randomly.
Pair Corralation between Asuransi Bintang and Asuransi Bina
Assuming the 90 days trading horizon Asuransi Bintang Tbk is expected to generate 3.57 times more return on investment than Asuransi Bina. However, Asuransi Bintang is 3.57 times more volatile than Asuransi Bina Dana. It trades about 0.0 of its potential returns per unit of risk. Asuransi Bina Dana is currently generating about -0.14 per unit of risk. If you would invest 64,750 in Asuransi Bintang Tbk on August 29, 2024 and sell it today you would lose (12,750) from holding Asuransi Bintang Tbk or give up 19.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
Asuransi Bintang Tbk vs. Asuransi Bina Dana
Performance |
| Timeline |
| Asuransi Bintang Tbk |
| Asuransi Bina Dana |
Asuransi Bintang and Asuransi Bina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bintang and Asuransi Bina
The main advantage of trading using opposite Asuransi Bintang and Asuransi Bina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bintang position performs unexpectedly, Asuransi Bina 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 Bina will offset losses from the drop in Asuransi Bina's long position.| Asuransi Bintang vs. Asuransi Dayin Mitra | Asuransi Bintang vs. Asuransi Harta Aman | Asuransi Bintang vs. Asuransi Ramayana Tbk | Asuransi Bintang vs. Asuransi Jasa Tania |
| Asuransi Bina vs. Asuransi Dayin Mitra | Asuransi Bina vs. Asuransi Harta Aman | Asuransi Bina vs. Asuransi Bintang Tbk | Asuransi Bina vs. Asuransi Ramayana Tbk |
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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