Correlation Between Asuransi Jiwa and Surya Fajar

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

By analyzing existing cross correlation between Asuransi Jiwa Sinarmas and Surya Fajar Capital, you can compare the effects of market volatilities on Asuransi Jiwa and Surya Fajar 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 Jiwa with a short position of Surya Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Jiwa and Surya Fajar.

Diversification Opportunities for Asuransi Jiwa and Surya Fajar

-0.28

Correlation Coefficient

Asuransi Jiwa  Surya Fajar

Very good diversification

The 3 months correlation between Asuransi and Surya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Jiwa Sinarmas and Surya Fajar Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Fajar Capital and Asuransi Jiwa 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 Jiwa Sinarmas are associated (or correlated) with Surya Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Fajar Capital has no effect on the direction of Asuransi Jiwa i.e., Asuransi Jiwa and Surya Fajar go up and down completely randomly.

Pair Corralation between Asuransi Jiwa and Surya Fajar

Assuming the 90 days trading horizon Asuransi Jiwa Sinarmas is expected to under-perform the Surya Fajar. In addition to that, Asuransi Jiwa is 11.72 times more volatile than Surya Fajar Capital. It trades about -0.07 of its total potential returns per unit of risk. Surya Fajar Capital is currently generating about -0.05 per unit of volatility. If you would invest  184,000  in Surya Fajar Capital on December 1, 2024 and sell it today you would lose (1,500) from holding Surya Fajar Capital or give up 0.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Asuransi Jiwa Sinarmas  vs.  Surya Fajar Capital

Asuransi Jiwa Sinarmas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asuransi Jiwa Sinarmas 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Surya Fajar Capital

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Asuransi Jiwa and Surya Fajar

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

The idea behind Asuransi Jiwa Sinarmas and Surya Fajar Capital 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.