Correlation Between Asuransi Ramayana and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Asuransi Ramayana and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Asuransi Ramayana and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Ramayana and Dow Jones.
Diversification Opportunities for Asuransi Ramayana and Dow Jones
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asuransi and Dow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Ramayana Tbk and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Asuransi Ramayana i.e., Asuransi Ramayana and Dow Jones go up and down completely randomly.
Pair Corralation between Asuransi Ramayana and Dow Jones
Assuming the 90 days trading horizon Asuransi Ramayana Tbk is expected to generate 76.01 times more return on investment than Dow Jones. However, Asuransi Ramayana is 76.01 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 31,378 in Asuransi Ramayana Tbk on August 26, 2024 and sell it today you would earn a total of 4,622 from holding Asuransi Ramayana Tbk or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.94% |
| Values | Daily Returns |
Asuransi Ramayana Tbk vs. Dow Jones Industrial
Performance |
| Timeline |
Asuransi Ramayana and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Asuransi Ramayana Tbk
Pair trading matchups for Asuransi Ramayana
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Asuransi Ramayana and Dow Jones
The main advantage of trading using opposite Asuransi Ramayana and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Ramayana position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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