Correlation Between Hanjaya Mandala and Asuransi Ramayana
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Asuransi Ramayana 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 Hanjaya Mandala and Asuransi Ramayana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjaya Mandala Sampoerna and Asuransi Ramayana Tbk, you can compare the effects of market volatilities on Hanjaya Mandala and Asuransi Ramayana 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 Hanjaya Mandala with a short position of Asuransi Ramayana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Asuransi Ramayana.
Diversification Opportunities for Hanjaya Mandala and Asuransi Ramayana
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hanjaya and Asuransi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Asuransi Ramayana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Ramayana Tbk and Hanjaya Mandala 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 Hanjaya Mandala Sampoerna are associated (or correlated) with Asuransi Ramayana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Ramayana Tbk has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Asuransi Ramayana go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Asuransi Ramayana
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to generate 0.63 times more return on investment than Asuransi Ramayana. However, Hanjaya Mandala Sampoerna is 1.59 times less risky than Asuransi Ramayana. It trades about -0.22 of its potential returns per unit of risk. Asuransi Ramayana Tbk is currently generating about -0.15 per unit of risk. If you would invest 63,500 in Hanjaya Mandala Sampoerna on October 26, 2024 and sell it today you would lose (2,500) from holding Hanjaya Mandala Sampoerna or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Asuransi Ramayana Tbk
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Asuransi Ramayana Tbk |
Hanjaya Mandala and Asuransi Ramayana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Asuransi Ramayana
The main advantage of trading using opposite Hanjaya Mandala and Asuransi Ramayana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Asuransi Ramayana 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 Ramayana will offset losses from the drop in Asuransi Ramayana's long position.| Hanjaya Mandala vs. Gudang Garam Tbk | Hanjaya Mandala vs. Unilever Indonesia Tbk | Hanjaya Mandala vs. Indofood Cbp Sukses | Hanjaya Mandala vs. PT Indofood Sukses |
| Asuransi Ramayana vs. Asuransi Bintang Tbk | Asuransi Ramayana vs. Asuransi Dayin Mitra | Asuransi Ramayana vs. Asuransi Bina Dana | Asuransi Ramayana 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |