Correlation Between Bukit Asam and Asuransi Bina
Can any of the company-specific risk be diversified away by investing in both Bukit Asam 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 Bukit Asam and Asuransi Bina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Asam Tbk and Asuransi Bina Dana, you can compare the effects of market volatilities on Bukit Asam 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 Bukit Asam with a short position of Asuransi Bina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Asam and Asuransi Bina.
Diversification Opportunities for Bukit Asam and Asuransi Bina
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bukit and Asuransi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk 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 Bukit Asam 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 Bukit Asam Tbk 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 Bukit Asam i.e., Bukit Asam and Asuransi Bina go up and down completely randomly.
Pair Corralation between Bukit Asam and Asuransi Bina
If you would invest 406,000 in Asuransi Bina Dana on August 29, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bukit Asam Tbk vs. Asuransi Bina Dana
Performance |
| Timeline |
| Bukit Asam Tbk |
| Asuransi Bina Dana |
Bukit Asam and Asuransi Bina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Asam and Asuransi Bina
The main advantage of trading using opposite Bukit Asam and Asuransi Bina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Asam 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.| Bukit Asam vs. Perusahaan Gas Negara | Bukit Asam vs. Indo Tambangraya Megah | Bukit Asam vs. Aneka Tambang Persero | Bukit Asam vs. Adaro Energy Tbk |
| Asuransi Bina vs. Asuransi Dayin Mitra | Asuransi Bina vs. Asuransi Harta Aman | Asuransi Bina vs. Asuransi Bintang Tbk | Asuransi Bina vs. Asuransi Ramayana Tbk |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |