Correlation Between Asuransi Jasa and Asuransi Kresna

Can any of the company-specific risk be diversified away by investing in both Asuransi Jasa and Asuransi Kresna 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 Asuransi Kresna 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 Asuransi Kresna Mitra, you can compare the effects of market volatilities on Asuransi Jasa and Asuransi Kresna 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 Asuransi Kresna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Jasa and Asuransi Kresna.

Diversification Opportunities for Asuransi Jasa and Asuransi Kresna

0.32

Correlation Coefficient

Asuransi Jasa  Asuransi Kresna

Weak diversification

The 3 months correlation between Asuransi and Asuransi is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Jasa Tania and Asuransi Kresna Mitra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Kresna Mitra 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 Asuransi Kresna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Kresna Mitra has no effect on the direction of Asuransi Jasa i.e., Asuransi Jasa and Asuransi Kresna go up and down completely randomly.

Pair Corralation between Asuransi Jasa and Asuransi Kresna

Assuming the 90 days trading horizon Asuransi Jasa Tania is expected to generate 0.37 times more return on investment than Asuransi Kresna. However, Asuransi Jasa Tania is 2.68 times less risky than Asuransi Kresna. It trades about -0.01 of its potential returns per unit of risk. Asuransi Kresna Mitra is currently generating about -0.04 per unit of risk. If you would invest  12,900  in Asuransi Jasa Tania on October 23, 2024 and sell it today you would lose (1,800) from holding Asuransi Jasa Tania or give up 13.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.79%
Values	Daily Returns

Asuransi Jasa Tania  vs.  Asuransi Kresna Mitra

Asuransi Jasa Tania

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asuransi Jasa Tania has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Asuransi Kresna Mitra

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asuransi Kresna Mitra are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Asuransi Kresna disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Asuransi Jasa and Asuransi Kresna

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

The idea behind Asuransi Jasa Tania and Asuransi Kresna Mitra 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.