Correlation Between Merdeka Copper and Asuransi Bina
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Asuransi Bina 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 Merdeka Copper and Asuransi Bina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Asuransi Bina Dana, you can compare the effects of market volatilities on Merdeka Copper and Asuransi Bina 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 Merdeka Copper with a short position of Asuransi Bina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Asuransi Bina.
Diversification Opportunities for Merdeka Copper and Asuransi Bina
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Merdeka and Asuransi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Asuransi Bina Dana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Bina Dana and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Asuransi Bina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Bina Dana has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Asuransi Bina go up and down completely randomly.
Pair Corralation between Merdeka Copper and Asuransi Bina
If you would invest 380,000 in Asuransi Bina Dana on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Asuransi Bina Dana or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Asuransi Bina Dana
Performance |
| Timeline |
| Merdeka Copper Gold |
| Asuransi Bina Dana |
Merdeka Copper and Asuransi Bina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Asuransi Bina
The main advantage of trading using opposite Merdeka Copper and Asuransi Bina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Asuransi Bina 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 Bina will offset losses from the drop in Asuransi Bina's long position.| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
| Asuransi Bina vs. Bank Ocbc Nisp | Asuransi Bina vs. Bank Mayapada Internasional | Asuransi Bina vs. Bank Permata Tbk | Asuransi Bina vs. Bank Pan Indonesia |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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