Correlation Between Asuransi Ramayana and Asuransi Jasa
Can any of the company-specific risk be diversified away by investing in both Asuransi Ramayana and Asuransi Jasa 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 Ramayana and Asuransi Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Ramayana Tbk and Asuransi Jasa Tania, you can compare the effects of market volatilities on Asuransi Ramayana and Asuransi Jasa 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 Ramayana with a short position of Asuransi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Ramayana and Asuransi Jasa.
Diversification Opportunities for Asuransi Ramayana and Asuransi Jasa
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Asuransi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Ramayana Tbk and Asuransi Jasa Tania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Jasa Tania and Asuransi Ramayana 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 Ramayana Tbk are associated (or correlated) with Asuransi Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Jasa Tania has no effect on the direction of Asuransi Ramayana i.e., Asuransi Ramayana and Asuransi Jasa go up and down completely randomly.
Pair Corralation between Asuransi Ramayana and Asuransi Jasa
Assuming the 90 days trading horizon Asuransi Ramayana Tbk is expected to generate 1.73 times more return on investment than Asuransi Jasa. However, Asuransi Ramayana is 1.73 times more volatile than Asuransi Jasa Tania. It trades about -0.05 of its potential returns per unit of risk. Asuransi Jasa Tania is currently generating about -0.09 per unit of risk. If you would invest 35,600 in Asuransi Ramayana Tbk on November 4, 2024 and sell it today you would lose (1,600) from holding Asuransi Ramayana Tbk or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Ramayana Tbk vs. Asuransi Jasa Tania
Performance |
| Timeline |
| Asuransi Ramayana Tbk |
| Asuransi Jasa Tania |
Asuransi Ramayana and Asuransi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Ramayana and Asuransi Jasa
The main advantage of trading using opposite Asuransi Ramayana and Asuransi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Ramayana position performs unexpectedly, Asuransi Jasa 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 Jasa will offset losses from the drop in Asuransi Jasa's long position.| Asuransi Ramayana vs. Asuransi Bintang Tbk | Asuransi Ramayana vs. Asuransi Dayin Mitra | Asuransi Ramayana vs. Asuransi Bina Dana | Asuransi Ramayana vs. Asuransi Jasa Tania |
| Asuransi Jasa vs. Asuransi Bintang Tbk | Asuransi Jasa vs. Asuransi Ramayana Tbk | Asuransi Jasa vs. Asuransi Harta Aman | Asuransi Jasa vs. Asuransi Dayin Mitra |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |