Correlation Between Asuransi Harta and Mnc Kapital

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

Diversification Opportunities for Asuransi Harta and Mnc Kapital

0.83

Correlation Coefficient

Asuransi Harta  Mnc Kapital

Very poor diversification

The 3 months correlation between Asuransi and Mnc is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Mnc Kapital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Kapital Indonesia 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 Mnc Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Kapital Indonesia has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Mnc Kapital go up and down completely randomly.

Pair Corralation between Asuransi Harta and Mnc Kapital

Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 1.47 times more return on investment than Mnc Kapital. However, Asuransi Harta is 1.47 times more volatile than Mnc Kapital Indonesia. It trades about 0.03 of its potential returns per unit of risk. Mnc Kapital Indonesia is currently generating about 0.0 per unit of risk. If you would invest  8,000  in Asuransi Harta Aman on September 13, 2024 and sell it today you would earn a total of  1,300  from holding Asuransi Harta Aman or generate 16.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Asuransi Harta Aman  vs.  Mnc Kapital Indonesia

Asuransi Harta Aman

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asuransi Harta Aman 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.

Mnc Kapital Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mnc Kapital Indonesia 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.

Pair Trading with Asuransi Harta and Mnc Kapital

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

The idea behind Asuransi Harta Aman and Mnc Kapital Indonesia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .