Correlation Between Asuransi Dayin and Asuransi Ramayana
Can any of the company-specific risk be diversified away by investing in both Asuransi Dayin and Asuransi Ramayana 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 Ramayana 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 Ramayana Tbk, you can compare the effects of market volatilities on Asuransi Dayin and Asuransi Ramayana 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 Ramayana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Dayin and Asuransi Ramayana.
Diversification Opportunities for Asuransi Dayin and Asuransi Ramayana
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Dayin Mitra and Asuransi Ramayana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Ramayana 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 Ramayana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Ramayana Tbk has no effect on the direction of Asuransi Dayin i.e., Asuransi Dayin and Asuransi Ramayana go up and down completely randomly.
Pair Corralation between Asuransi Dayin and Asuransi Ramayana
Assuming the 90 days trading horizon Asuransi Dayin Mitra is expected to generate 0.38 times more return on investment than Asuransi Ramayana. However, Asuransi Dayin Mitra is 2.63 times less risky than Asuransi Ramayana. It trades about -0.05 of its potential returns per unit of risk. Asuransi Ramayana Tbk is currently generating about -0.05 per unit of risk. If you would invest 48,800 in Asuransi Dayin Mitra on November 4, 2024 and sell it today you would lose (800.00) from holding Asuransi Dayin Mitra or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Dayin Mitra vs. Asuransi Ramayana Tbk
Performance |
| Timeline |
| Asuransi Dayin Mitra |
| Asuransi Ramayana Tbk |
Asuransi Dayin and Asuransi Ramayana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Dayin and Asuransi Ramayana
The main advantage of trading using opposite Asuransi Dayin and Asuransi Ramayana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Dayin position performs unexpectedly, Asuransi Ramayana 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 Ramayana will offset losses from the drop in Asuransi Ramayana'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 |
| Asuransi Ramayana vs. Asuransi Bintang Tbk | Asuransi Ramayana vs. Asuransi Dayin Mitra | Asuransi Ramayana vs. Asuransi Bina Dana | Asuransi Ramayana 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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