Correlation Between Trust Finance and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Trust Finance 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 Trust Finance and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Finance Indonesia and Asuransi Harta Aman, you can compare the effects of market volatilities on Trust Finance 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 Trust Finance with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Finance and Asuransi Harta.
Diversification Opportunities for Trust Finance and Asuransi Harta
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trust and Asuransi is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Trust Finance Indonesia 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 Trust Finance 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 Trust Finance Indonesia 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 Trust Finance i.e., Trust Finance and Asuransi Harta go up and down completely randomly.
Pair Corralation between Trust Finance and Asuransi Harta
Assuming the 90 days trading horizon Trust Finance Indonesia is expected to generate 0.99 times more return on investment than Asuransi Harta. However, Trust Finance Indonesia is 1.01 times less risky than Asuransi Harta. It trades about 0.06 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 43,800 in Trust Finance Indonesia on August 30, 2024 and sell it today you would earn a total of 1,000.00 from holding Trust Finance Indonesia or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trust Finance Indonesia vs. Asuransi Harta Aman
Performance |
| Timeline |
| Trust Finance Indonesia |
| Asuransi Harta Aman |
Trust Finance and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trust Finance and Asuransi Harta
The main advantage of trading using opposite Trust Finance and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Finance 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.| Trust Finance vs. Wahana Ottomitra Multiartha | Trust Finance vs. Yulie Sekurindo Tbk | Trust Finance vs. Trimegah Securities Tbk | Trust Finance vs. Mandala Multifinance Tbk |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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