Correlation Between Asuransi Dayin and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Asuransi Dayin and Exploitasi Energi 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 Exploitasi Energi 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 Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Asuransi Dayin and Exploitasi Energi 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 Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Dayin and Exploitasi Energi.
Diversification Opportunities for Asuransi Dayin and Exploitasi Energi
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Exploitasi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Dayin Mitra and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi 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 Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Asuransi Dayin i.e., Asuransi Dayin and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Asuransi Dayin and Exploitasi Energi
Assuming the 90 days trading horizon Asuransi Dayin is expected to generate 28.04 times less return on investment than Exploitasi Energi. But when comparing it to its historical volatility, Asuransi Dayin Mitra is 10.86 times less risky than Exploitasi Energi. It trades about 0.16 of its potential returns per unit of risk. Exploitasi Energi Indonesia is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Exploitasi Energi Indonesia on October 26, 2024 and sell it today you would earn a total of 1,400 from holding Exploitasi Energi Indonesia or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Dayin Mitra vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Asuransi Dayin Mitra |
| Exploitasi Energi |
Asuransi Dayin and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Dayin and Exploitasi Energi
The main advantage of trading using opposite Asuransi Dayin and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Dayin position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi'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 |
| Exploitasi Energi vs. Central Proteina Prima | Exploitasi Energi vs. Darma Henwa Tbk | Exploitasi Energi vs. Bakrieland Development Tbk | Exploitasi Energi vs. Energi Mega Persada |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |