Correlation Between Asuransi Harta and Tirta Mahakam

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Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Tirta Mahakam 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 Harta and Tirta Mahakam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Harta Aman and Tirta Mahakam Resources, you can compare the effects of market volatilities on Asuransi Harta and Tirta Mahakam 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 Harta with a short position of Tirta Mahakam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Tirta Mahakam.

Diversification Opportunities for Asuransi Harta and Tirta Mahakam

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Asuransi and Tirta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Tirta Mahakam Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tirta Mahakam Resources and Asuransi Harta 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 Harta Aman are associated (or correlated) with Tirta Mahakam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tirta Mahakam Resources has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Tirta Mahakam go up and down completely randomly.

Pair Corralation between Asuransi Harta and Tirta Mahakam

If you would invest  0.00  in Asuransi Harta Aman on September 7, 2024 and sell it today you would earn a total of  0.00  from holding Asuransi Harta Aman or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Asuransi Harta Aman  vs.  Tirta Mahakam Resources

 Performance 
       Timeline  
Asuransi Harta Aman 

Risk-Adjusted Performance

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Over the last 90 days Asuransi Harta Aman has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Asuransi Harta is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Tirta Mahakam Resources 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Tirta Mahakam Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Asuransi Harta and Tirta Mahakam Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Asuransi Harta and Tirta Mahakam

The main advantage of trading using opposite Asuransi Harta and Tirta Mahakam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Tirta Mahakam 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 Tirta Mahakam will offset losses from the drop in Tirta Mahakam's long position.
The idea behind Asuransi Harta Aman and Tirta Mahakam Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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