Correlation Between Empire State and Asuransi Jasa
Can any of the company-specific risk be diversified away by investing in both Empire State 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 Empire State and Asuransi Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Asuransi Jasa Tania, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of Asuransi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Asuransi Jasa.
Diversification Opportunities for Empire State and Asuransi Jasa
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Empire and Asuransi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty 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 Empire State 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 Empire State Realty 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 Empire State i.e., Empire State and Asuransi Jasa go up and down completely randomly.
Pair Corralation between Empire State and Asuransi Jasa
Given the investment horizon of 90 days Empire State Realty is expected to under-perform the Asuransi Jasa. But the stock apears to be less risky and, when comparing its historical volatility, Empire State Realty is 1.5 times less risky than Asuransi Jasa. The stock trades about -0.31 of its potential returns per unit of risk. The Asuransi Jasa Tania is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,000 in Asuransi Jasa Tania on November 27, 2024 and sell it today you would earn a total of 300.00 from holding Asuransi Jasa Tania or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Empire State Realty vs. Asuransi Jasa Tania
Performance |
| Timeline |
| Empire State Realty |
| Asuransi Jasa Tania |
Empire State and Asuransi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Asuransi Jasa
The main advantage of trading using opposite Empire State and Asuransi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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