Correlation Between Panca Global and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Panca Global and Asuransi Multi 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 Panca Global and Asuransi Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Global Securities and Asuransi Multi Artha, you can compare the effects of market volatilities on Panca Global and Asuransi Multi 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 Panca Global with a short position of Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Global and Asuransi Multi.
Diversification Opportunities for Panca Global and Asuransi Multi
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panca and Asuransi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Panca Global Securities and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha and Panca Global 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 Panca Global Securities are associated (or correlated) with Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Panca Global i.e., Panca Global and Asuransi Multi go up and down completely randomly.
Pair Corralation between Panca Global and Asuransi Multi
Assuming the 90 days trading horizon Panca Global Securities is expected to under-perform the Asuransi Multi. In addition to that, Panca Global is 3.9 times more volatile than Asuransi Multi Artha. It trades about -0.02 of its total potential returns per unit of risk. Asuransi Multi Artha is currently generating about 0.01 per unit of volatility. If you would invest 33,109 in Asuransi Multi Artha on October 25, 2024 and sell it today you would earn a total of 491.00 from holding Asuransi Multi Artha or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Global Securities vs. Asuransi Multi Artha
Performance |
| Timeline |
| Panca Global Securities |
| Asuransi Multi Artha |
Panca Global and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Global and Asuransi Multi
The main advantage of trading using opposite Panca Global and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Global position performs unexpectedly, Asuransi Multi 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 Multi will offset losses from the drop in Asuransi Multi's long position.| Panca Global vs. Panin Sekuritas Tbk | Panca Global vs. Reliance Securities Tbk | Panca Global vs. Mandala Multifinance Tbk | Panca Global vs. Paninvest Tbk |
| Asuransi Multi vs. Asuransi Bina Dana | Asuransi Multi vs. Asuransi Dayin Mitra | Asuransi Multi vs. Clipan Finance Indonesia | Asuransi Multi vs. Asuransi Harta Aman |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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