Correlation Between Asuransi Harta and Victoria Insurance
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Victoria Insurance 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 Victoria Insurance 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 Victoria Insurance Tbk, you can compare the effects of market volatilities on Asuransi Harta and Victoria Insurance 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 Victoria Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Victoria Insurance.
Diversification Opportunities for Asuransi Harta and Victoria Insurance
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asuransi and Victoria is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Victoria Insurance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victoria Insurance Tbk 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 Victoria Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victoria Insurance Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Victoria Insurance go up and down completely randomly.
Pair Corralation between Asuransi Harta and Victoria Insurance
Assuming the 90 days trading horizon Asuransi Harta Aman is expected to generate 0.95 times more return on investment than Victoria Insurance. However, Asuransi Harta Aman is 1.05 times less risky than Victoria Insurance. It trades about 0.03 of its potential returns per unit of risk. Victoria Insurance Tbk is currently generating about 0.01 per unit of risk. If you would invest 9,300 in Asuransi Harta Aman on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Asuransi Harta Aman or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Victoria Insurance Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Victoria Insurance Tbk |
Asuransi Harta and Victoria Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Victoria Insurance
The main advantage of trading using opposite Asuransi Harta and Victoria Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Victoria Insurance 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 Victoria Insurance will offset losses from the drop in Victoria Insurance's long position.| Asuransi Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta vs. Asuransi Jasa Tania |
| Victoria Insurance vs. Victoria Investama Tbk | Victoria Insurance vs. Verena Multi Finance | Victoria Insurance vs. Asuransi Harta Aman | Victoria Insurance vs. Trust Finance Indonesia |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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