Correlation Between Malacca Trust and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Malacca Trust 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 Malacca Trust and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malacca Trust Wuwungan and Asuransi Harta Aman, you can compare the effects of market volatilities on Malacca Trust 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 Malacca Trust with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malacca Trust and Asuransi Harta.
Diversification Opportunities for Malacca Trust and Asuransi Harta
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Malacca and Asuransi is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Malacca Trust Wuwungan 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 Malacca Trust 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 Malacca Trust Wuwungan 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 Malacca Trust i.e., Malacca Trust and Asuransi Harta go up and down completely randomly.
Pair Corralation between Malacca Trust and Asuransi Harta
Assuming the 90 days trading horizon Malacca Trust Wuwungan is expected to generate 0.96 times more return on investment than Asuransi Harta. However, Malacca Trust Wuwungan is 1.04 times less risky than Asuransi Harta. It trades about 0.19 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.18 per unit of risk. If you would invest 15,600 in Malacca Trust Wuwungan on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Malacca Trust Wuwungan or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malacca Trust Wuwungan vs. Asuransi Harta Aman
Performance |
| Timeline |
| Malacca Trust Wuwungan |
| Asuransi Harta Aman |
Malacca Trust and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malacca Trust and Asuransi Harta
The main advantage of trading using opposite Malacca Trust and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malacca Trust 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.| Malacca Trust vs. Bank Cimb Niaga | Malacca Trust vs. Indosat Tbk | Malacca Trust vs. Astra Agro Lestari | Malacca Trust vs. Bank Mandiri Persero |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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