Correlation Between Asuransi Dayin and Asuransi Bintang
Can any of the company-specific risk be diversified away by investing in both Asuransi Dayin 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 Asuransi Dayin and Asuransi Bintang 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 Asuransi Bintang Tbk, you can compare the effects of market volatilities on Asuransi Dayin 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 Asuransi Dayin with a short position of Asuransi Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Dayin and Asuransi Bintang.
Diversification Opportunities for Asuransi Dayin and Asuransi Bintang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asuransi and Asuransi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Dayin Mitra 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 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 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 Asuransi Dayin i.e., Asuransi Dayin and Asuransi Bintang go up and down completely randomly.
Pair Corralation between Asuransi Dayin and Asuransi Bintang
Assuming the 90 days trading horizon Asuransi Dayin Mitra is expected to generate 0.33 times more return on investment than Asuransi Bintang. However, Asuransi Dayin Mitra is 3.0 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 -0.01 per unit of risk. If you would invest 45,525 in Asuransi Dayin Mitra on August 25, 2024 and sell it today you would earn a total of 4,075 from holding Asuransi Dayin Mitra or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Dayin Mitra vs. Asuransi Bintang Tbk
Performance |
| Timeline |
| Asuransi Dayin Mitra |
| Asuransi Bintang Tbk |
Asuransi Dayin and Asuransi Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Dayin and Asuransi Bintang
The main advantage of trading using opposite Asuransi Dayin and Asuransi Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Dayin 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.| Asuransi Dayin vs. Paninvest Tbk | Asuransi Dayin vs. Maskapai Reasuransi Indonesia | Asuransi Dayin vs. Panin Sekuritas Tbk | Asuransi Dayin vs. Wahana Ottomitra Multiartha |
| Asuransi Bintang vs. Paninvest Tbk | Asuransi Bintang vs. Maskapai Reasuransi Indonesia | Asuransi Bintang vs. Panin Sekuritas Tbk | Asuransi Bintang vs. Wahana Ottomitra Multiartha |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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