Correlation Between Weha Transportasi and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi 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 Weha Transportasi and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weha Transportasi Indonesia and Asuransi Harta Aman, you can compare the effects of market volatilities on Weha Transportasi 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 Weha Transportasi with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Asuransi Harta.
Diversification Opportunities for Weha Transportasi and Asuransi Harta
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weha and Asuransi is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi 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 Weha Transportasi 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 Weha Transportasi 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 Weha Transportasi i.e., Weha Transportasi and Asuransi Harta go up and down completely randomly.
Pair Corralation between Weha Transportasi and Asuransi Harta
Assuming the 90 days trading horizon Weha Transportasi is expected to generate 2.21 times less return on investment than Asuransi Harta. But when comparing it to its historical volatility, Weha Transportasi Indonesia is 1.87 times less risky than Asuransi Harta. It trades about 0.02 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,100 in Asuransi Harta Aman on September 12, 2024 and sell it today you would earn a total of 1,200 from holding Asuransi Harta Aman or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Asuransi Harta Aman
Performance |
| Timeline |
| Weha Transportasi |
| Asuransi Harta Aman |
Weha Transportasi and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Asuransi Harta
The main advantage of trading using opposite Weha Transportasi and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi 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.| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia Tbk |
| Asuransi Harta vs. Paninvest Tbk | Asuransi Harta vs. Maskapai Reasuransi Indonesia | Asuransi Harta vs. Panin Sekuritas Tbk | Asuransi Harta vs. Wahana Ottomitra Multiartha |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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