Correlation Between Clipan Finance and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Asuransi Harta 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 Clipan Finance and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Asuransi Harta Aman, you can compare the effects of market volatilities on Clipan Finance and Asuransi Harta 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 Clipan Finance with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Asuransi Harta.
Diversification Opportunities for Clipan Finance and Asuransi Harta
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clipan and Asuransi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Asuransi Harta Aman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Harta Aman and Clipan Finance 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 Clipan Finance Indonesia are associated (or correlated) with Asuransi Harta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Harta Aman has no effect on the direction of Clipan Finance i.e., Clipan Finance and Asuransi Harta go up and down completely randomly.
Pair Corralation between Clipan Finance and Asuransi Harta
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Asuransi Harta. But the stock apears to be less risky and, when comparing its historical volatility, Clipan Finance Indonesia is 1.59 times less risky than Asuransi Harta. The stock trades about -0.7 of its potential returns per unit of risk. The Asuransi Harta Aman is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 10,200 in Asuransi Harta Aman on August 31, 2024 and sell it today you would lose (800.00) from holding Asuransi Harta Aman or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Asuransi Harta Aman
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Asuransi Harta Aman |
Clipan Finance and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Asuransi Harta
The main advantage of trading using opposite Clipan Finance and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Asuransi Harta 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 Harta will offset losses from the drop in Asuransi Harta's long position.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
| Asuransi Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta vs. Asuransi Jasa Tania |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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