Correlation Between Asuransi Jasa and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Asuransi Jasa and Maming Enam 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 Jasa and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Jasa Tania and Maming Enam Sembilan, you can compare the effects of market volatilities on Asuransi Jasa and Maming Enam 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 Jasa with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Jasa and Maming Enam.
Diversification Opportunities for Asuransi Jasa and Maming Enam
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Maming is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Jasa Tania and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Asuransi Jasa 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 Jasa Tania are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Asuransi Jasa i.e., Asuransi Jasa and Maming Enam go up and down completely randomly.
Pair Corralation between Asuransi Jasa and Maming Enam
Assuming the 90 days trading horizon Asuransi Jasa Tania is expected to generate 0.29 times more return on investment than Maming Enam. However, Asuransi Jasa Tania is 3.47 times less risky than Maming Enam. It trades about -0.03 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.13 per unit of risk. If you would invest 11,100 in Asuransi Jasa Tania on November 4, 2024 and sell it today you would lose (100.00) from holding Asuransi Jasa Tania or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Jasa Tania vs. Maming Enam Sembilan
Performance |
| Timeline |
| Asuransi Jasa Tania |
| Maming Enam Sembilan |
Asuransi Jasa and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Jasa and Maming Enam
The main advantage of trading using opposite Asuransi Jasa and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Jasa position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Asuransi Jasa vs. Asuransi Bintang Tbk | Asuransi Jasa vs. Asuransi Ramayana Tbk | Asuransi Jasa vs. Asuransi Harta Aman | Asuransi Jasa vs. Asuransi Dayin Mitra |
| Maming Enam vs. Asuransi Dayin Mitra | Maming Enam vs. Asuransi Harta Aman | Maming Enam vs. Asuransi Bintang Tbk | Maming Enam vs. Asuransi Ramayana 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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