Correlation Between Asuransi Bintang and Mnc Kapital
Can any of the company-specific risk be diversified away by investing in both Asuransi Bintang and Mnc Kapital 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 Mnc Kapital 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 Mnc Kapital Indonesia, you can compare the effects of market volatilities on Asuransi Bintang and Mnc Kapital 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 Mnc Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Bintang and Mnc Kapital.
Diversification Opportunities for Asuransi Bintang and Mnc Kapital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asuransi and Mnc is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Bintang Tbk and Mnc Kapital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Kapital Indonesia 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 Mnc Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Kapital Indonesia has no effect on the direction of Asuransi Bintang i.e., Asuransi Bintang and Mnc Kapital go up and down completely randomly.
Pair Corralation between Asuransi Bintang and Mnc Kapital
Assuming the 90 days trading horizon Asuransi Bintang Tbk is expected to under-perform the Mnc Kapital. But the stock apears to be less risky and, when comparing its historical volatility, Asuransi Bintang Tbk is 1.39 times less risky than Mnc Kapital. The stock trades about -0.4 of its potential returns per unit of risk. The Mnc Kapital Indonesia is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Mnc Kapital Indonesia on November 4, 2024 and sell it today you would earn a total of 100.00 from holding Mnc Kapital Indonesia or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Bintang Tbk vs. Mnc Kapital Indonesia
Performance |
| Timeline |
| Asuransi Bintang Tbk |
| Mnc Kapital Indonesia |
Asuransi Bintang and Mnc Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Bintang and Mnc Kapital
The main advantage of trading using opposite Asuransi Bintang and Mnc Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Bintang position performs unexpectedly, Mnc Kapital 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 Mnc Kapital will offset losses from the drop in Mnc Kapital'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 |
| Mnc Kapital vs. Chandra Asri Petrochemical | Mnc Kapital vs. Protech Mitra Perkasa | Mnc Kapital vs. Anabatic Technologies Tbk | Mnc Kapital vs. Victoria Insurance 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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