Correlation Between Asuransi Bintang and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Asuransi Bintang and Asuransi Harta 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 Harta 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 Harta Aman, you can compare the effects of market volatilities on Asuransi Bintang and Asuransi Harta 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 Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bintang and Asuransi Harta.
Diversification Opportunities for Asuransi Bintang and Asuransi Harta
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bintang Tbk and Asuransi Harta Aman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Harta Aman 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 Harta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Harta Aman has no effect on the direction of Asuransi Bintang i.e., Asuransi Bintang and Asuransi Harta go up and down completely randomly.
Pair Corralation between Asuransi Bintang and Asuransi Harta
Assuming the 90 days trading horizon Asuransi Bintang Tbk is expected to under-perform the Asuransi Harta. In addition to that, Asuransi Bintang is 1.13 times more volatile than Asuransi Harta Aman. It trades about -0.08 of its total potential returns per unit of risk. Asuransi Harta Aman is currently generating about 0.01 per unit of volatility. If you would invest 9,600 in Asuransi Harta Aman on August 29, 2024 and sell it today you would lose (200.00) from holding Asuransi Harta Aman or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Bintang Tbk vs. Asuransi Harta Aman
Performance |
| Timeline |
| Asuransi Bintang Tbk |
| Asuransi Harta Aman |
Asuransi Bintang and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bintang and Asuransi Harta
The main advantage of trading using opposite Asuransi Bintang and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bintang position performs unexpectedly, Asuransi Harta 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 Harta will offset losses from the drop in Asuransi Harta'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 Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |