Correlation Between Asuransi Kresna and Asuransi Jasa

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

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

Diversification Opportunities for Asuransi Kresna and Asuransi Jasa

0.0

Correlation Coefficient

Asuransi Kresna  Asuransi Jasa

Pay attention - limited upside

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

Pair Corralation between Asuransi Kresna and Asuransi Jasa

If you would invest  0.00  in Asuransi Kresna Mitra on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Asuransi Kresna Mitra or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Asuransi Kresna Mitra  vs.  Asuransi Jasa Tania

Asuransi Kresna Mitra

Risk-Adjusted Performance

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Modest

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

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 quite persistent forward-looking signals, Asuransi Jasa 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 Kresna and Asuransi Jasa

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

The idea behind Asuransi Kresna Mitra and Asuransi Jasa Tania 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.