Correlation Between Asuransi Jasa and Bank Artos
Can any of the company-specific risk be diversified away by investing in both Asuransi Jasa and Bank Artos 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 Asuransi Jasa and Bank Artos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Jasa Tania and Bank Artos Indonesia, you can compare the effects of market volatilities on Asuransi Jasa and Bank Artos 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 Asuransi Jasa with a short position of Bank Artos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Jasa and Bank Artos.
Diversification Opportunities for Asuransi Jasa and Bank Artos
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asuransi and Bank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Jasa Tania and Bank Artos Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Artos Indonesia and Asuransi Jasa 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 Asuransi Jasa Tania are associated (or correlated) with Bank Artos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Artos Indonesia has no effect on the direction of Asuransi Jasa i.e., Asuransi Jasa and Bank Artos go up and down completely randomly.
Pair Corralation between Asuransi Jasa and Bank Artos
Assuming the 90 days trading horizon Asuransi Jasa Tania is expected to generate 0.53 times more return on investment than Bank Artos. However, Asuransi Jasa Tania is 1.87 times less risky than Bank Artos. It trades about 0.11 of its potential returns per unit of risk. Bank Artos Indonesia is currently generating about -0.07 per unit of risk. If you would invest 11,300 in Asuransi Jasa Tania on March 13, 2024 and sell it today you would earn a total of 400.00 from holding Asuransi Jasa Tania or generate 3.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asuransi Jasa Tania vs. Bank Artos Indonesia
Performance |
Timeline |
Asuransi Jasa Tania |
Bank Artos Indonesia |
Asuransi Jasa and Bank Artos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asuransi Jasa and Bank Artos
The main advantage of trading using opposite Asuransi Jasa and Bank Artos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Jasa position performs unexpectedly, Bank Artos 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 Bank Artos will offset losses from the drop in Bank Artos' long position.Asuransi Jasa vs. Asuransi Bintang Tbk | Asuransi Jasa vs. Asuransi Ramayana Tbk | Asuransi Jasa vs. Asuransi Harta Aman | Asuransi Jasa vs. Asuransi Dayin Mitra |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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