Correlation Between Asuransi Jasa and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Asuransi Jasa 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 Jasa 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 Jasa Tania and Pacific Strategic Financial, you can compare the effects of market volatilities on Asuransi Jasa 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 Jasa with a short position of Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Jasa and Pacific Strategic.
Diversification Opportunities for Asuransi Jasa and Pacific Strategic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asuransi and Pacific is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Jasa Tania 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 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 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 Jasa i.e., Asuransi Jasa and Pacific Strategic go up and down completely randomly.
Pair Corralation between Asuransi Jasa and Pacific Strategic
Assuming the 90 days trading horizon Asuransi Jasa Tania is expected to under-perform the Pacific Strategic. In addition to that, Asuransi Jasa is 1.41 times more volatile than Pacific Strategic Financial. It trades about -0.03 of its total potential returns per unit of risk. Pacific Strategic Financial is currently generating about 0.08 per unit of volatility. If you would invest 110,500 in Pacific Strategic Financial on November 4, 2024 and sell it today you would earn a total of 1,500 from holding Pacific Strategic Financial or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Jasa Tania vs. Pacific Strategic Financial
Performance |
| Timeline |
| Asuransi Jasa Tania |
| Pacific Strategic |
Asuransi Jasa and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Jasa and Pacific Strategic
The main advantage of trading using opposite Asuransi Jasa and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Jasa 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 Jasa vs. Asuransi Bintang Tbk | Asuransi Jasa vs. Asuransi Ramayana Tbk | Asuransi Jasa vs. Asuransi Harta Aman | Asuransi Jasa vs. Asuransi Dayin Mitra |
| Pacific Strategic vs. Asuransi Harta Aman | Pacific Strategic vs. Asuransi Bintang Tbk | Pacific Strategic vs. Mnc Kapital Indonesia | Pacific Strategic vs. Arthavest 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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