Correlation Between Asuransi Dayin and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Asuransi Dayin and Pacific Strategic 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 Dayin and Pacific Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Dayin Mitra and Pacific Strategic Financial, you can compare the effects of market volatilities on Asuransi Dayin and Pacific Strategic 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 Dayin with a short position of Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Dayin and Pacific Strategic.
Diversification Opportunities for Asuransi Dayin and Pacific Strategic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asuransi and Pacific is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Dayin Mitra and Pacific Strategic Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Strategic and Asuransi Dayin 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 Dayin Mitra are associated (or correlated) with Pacific Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Strategic has no effect on the direction of Asuransi Dayin i.e., Asuransi Dayin and Pacific Strategic go up and down completely randomly.
Pair Corralation between Asuransi Dayin and Pacific Strategic
Assuming the 90 days trading horizon Asuransi Dayin Mitra is expected to generate 1.39 times more return on investment than Pacific Strategic. However, Asuransi Dayin is 1.39 times more volatile than Pacific Strategic Financial. It trades about -0.06 of its potential returns per unit of risk. Pacific Strategic Financial is currently generating about -0.24 per unit of risk. If you would invest 50,000 in Asuransi Dayin Mitra on August 31, 2024 and sell it today you would lose (800.00) from holding Asuransi Dayin Mitra or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asuransi Dayin Mitra vs. Pacific Strategic Financial
Performance |
| Timeline |
| Asuransi Dayin Mitra |
| Pacific Strategic |
Asuransi Dayin and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Dayin and Pacific Strategic
The main advantage of trading using opposite Asuransi Dayin and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Dayin position performs unexpectedly, Pacific Strategic 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 Pacific Strategic will offset losses from the drop in Pacific Strategic's long position.| Asuransi Dayin vs. Asuransi Bintang Tbk | Asuransi Dayin vs. Asuransi Bina Dana | Asuransi Dayin vs. Asuransi Ramayana Tbk | Asuransi Dayin vs. Asuransi Harta Aman |
| Pacific Strategic vs. Bank BRISyariah Tbk | Pacific Strategic vs. Ace Hardware Indonesia | Pacific Strategic vs. Merdeka Copper Gold | Pacific Strategic vs. Mitra Pinasthika Mustika |
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 Positions Ratings module to 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.
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