Correlation Between Maskapai Reasuransi and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Maskapai Reasuransi and Dow Jones 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 Maskapai Reasuransi and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maskapai Reasuransi Indonesia and Dow Jones Industrial, you can compare the effects of market volatilities on Maskapai Reasuransi and Dow Jones 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 Maskapai Reasuransi with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maskapai Reasuransi and Dow Jones.
Diversification Opportunities for Maskapai Reasuransi and Dow Jones
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maskapai and Dow is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Maskapai Reasuransi Indonesia and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Maskapai Reasuransi i.e., Maskapai Reasuransi and Dow Jones go up and down completely randomly.
Pair Corralation between Maskapai Reasuransi and Dow Jones
Assuming the 90 days trading horizon Maskapai Reasuransi Indonesia is expected to under-perform the Dow Jones. In addition to that, Maskapai Reasuransi is 5.57 times more volatile than Dow Jones Industrial. It trades about -0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of volatility. If you would invest 3,394,710 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 992,325 from holding Dow Jones Industrial or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.77% |
| Values | Daily Returns |
Maskapai Reasuransi Indonesia vs. Dow Jones Industrial
Performance |
| Timeline |
Maskapai Reasuransi and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Maskapai Reasuransi Indonesia
Pair trading matchups for Maskapai Reasuransi
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Maskapai Reasuransi and Dow Jones
The main advantage of trading using opposite Maskapai Reasuransi and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maskapai Reasuransi position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Maskapai Reasuransi vs. Lippo General Insurance | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Mandala Multifinance Tbk | Maskapai Reasuransi vs. Bank Mayapada Internasional |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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