Correlation Between Merdeka Copper and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper 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 Merdeka Copper and Asuransi Harta 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 Harta Aman, you can compare the effects of market volatilities on Merdeka Copper 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 Merdeka Copper with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Asuransi Harta.
Diversification Opportunities for Merdeka Copper and Asuransi Harta
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Merdeka and Asuransi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold 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 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 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 Merdeka Copper i.e., Merdeka Copper and Asuransi Harta go up and down completely randomly.
Pair Corralation between Merdeka Copper and Asuransi Harta
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to under-perform the Asuransi Harta. In addition to that, Merdeka Copper is 1.1 times more volatile than Asuransi Harta Aman. It trades about -0.46 of its total potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.18 per unit of volatility. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Asuransi Harta Aman
Performance |
| Timeline |
| Merdeka Copper Gold |
| Asuransi Harta Aman |
Merdeka Copper and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Asuransi Harta
The main advantage of trading using opposite Merdeka Copper and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper 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.| Merdeka Copper vs. Perusahaan Gas Negara | Merdeka Copper vs. Vale Indonesia Tbk | Merdeka Copper vs. Telkom Indonesia Tbk | Merdeka Copper vs. Mitra Pinasthika Mustika |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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