Correlation Between Surya Fajar and Asuransi Jiwa
Can any of the company-specific risk be diversified away by investing in both Surya Fajar and Asuransi Jiwa 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 Surya Fajar and Asuransi Jiwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Fajar Capital and Asuransi Jiwa Sinarmas, you can compare the effects of market volatilities on Surya Fajar and Asuransi Jiwa 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 Surya Fajar with a short position of Asuransi Jiwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Fajar and Asuransi Jiwa.
Diversification Opportunities for Surya Fajar and Asuransi Jiwa
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Surya and Asuransi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Surya Fajar Capital and Asuransi Jiwa Sinarmas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Jiwa Sinarmas and Surya Fajar 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 Surya Fajar Capital are associated (or correlated) with Asuransi Jiwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Jiwa Sinarmas has no effect on the direction of Surya Fajar i.e., Surya Fajar and Asuransi Jiwa go up and down completely randomly.
Pair Corralation between Surya Fajar and Asuransi Jiwa
If you would invest 602,500 in Asuransi Jiwa Sinarmas on February 11, 2024 and sell it today you would earn a total of 0.00 from holding Asuransi Jiwa Sinarmas or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Surya Fajar Capital vs. Asuransi Jiwa Sinarmas
Performance |
Timeline |
Surya Fajar Capital |
Asuransi Jiwa Sinarmas |
Surya Fajar and Asuransi Jiwa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Surya Fajar and Asuransi Jiwa
The main advantage of trading using opposite Surya Fajar and Asuransi Jiwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Fajar position performs unexpectedly, Asuransi Jiwa 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 Jiwa will offset losses from the drop in Asuransi Jiwa's long position.Surya Fajar vs. Asuransi Jiwa Sinarmas | Surya Fajar vs. Surya Permata Andalan | Surya Fajar vs. Pollux Investasi Internasional | Surya Fajar vs. Panca Global Securities |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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