Correlation Between Fortune Mate and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Fortune Mate 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 Fortune Mate and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Mate Indonesia and Asuransi Harta Aman, you can compare the effects of market volatilities on Fortune Mate 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 Fortune Mate with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Mate and Asuransi Harta.
Diversification Opportunities for Fortune Mate and Asuransi Harta
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fortune and Asuransi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Mate 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 Fortune Mate 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 Fortune Mate 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 Fortune Mate i.e., Fortune Mate and Asuransi Harta go up and down completely randomly.
Pair Corralation between Fortune Mate and Asuransi Harta
Assuming the 90 days trading horizon Fortune Mate Indonesia is expected to generate 5.1 times more return on investment than Asuransi Harta. However, Fortune Mate is 5.1 times more volatile than Asuransi Harta Aman. It trades about 0.48 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.16 per unit of risk. If you would invest 22,800 in Fortune Mate Indonesia on September 2, 2024 and sell it today you would earn a total of 31,700 from holding Fortune Mate Indonesia or generate 139.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fortune Mate Indonesia vs. Asuransi Harta Aman
Performance |
| Timeline |
| Fortune Mate Indonesia |
| Asuransi Harta Aman |
Fortune Mate and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Mate and Asuransi Harta
The main advantage of trading using opposite Fortune Mate and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Mate 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.| Fortune Mate vs. Lippo Cikarang Tbk | Fortune Mate vs. Bekasi Asri Pemula | Fortune Mate vs. Mitra Pinasthika Mustika | Fortune Mate vs. Jakarta Int Hotels |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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