Correlation Between Asuransi Dayin and Buana Finance

Can any of the company-specific risk be diversified away by investing in both Asuransi Dayin and Buana Finance 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 Dayin and Buana Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asuransi Dayin Mitra and Buana Finance Tbk, you can compare the effects of market volatilities on Asuransi Dayin and Buana Finance 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 Dayin with a short position of Buana Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Dayin and Buana Finance.

Diversification Opportunities for Asuransi Dayin and Buana Finance

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Correlation Coefficient

Asuransi Dayin  Buana Finance

Pay attention - limited upside

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

Pair Corralation between Asuransi Dayin and Buana Finance

If you would invest (100.00) in Buana Finance Tbk on September 4, 2024 and sell it today you would earn a total of  100.00  from holding Buana Finance Tbk or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Asuransi Dayin Mitra  vs.  Buana Finance Tbk

Asuransi Dayin Mitra

Risk-Adjusted Performance

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Very Weak

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

Buana Finance Tbk

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Asuransi Dayin and Buana Finance

The main advantage of trading using opposite Asuransi Dayin and Buana Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Dayin position performs unexpectedly, Buana Finance 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 Buana Finance will offset losses from the drop in Buana Finance's long position.

The idea behind Asuransi Dayin Mitra and Buana Finance Tbk 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.