Correlation Between Dunia Virtual and Victoria Insurance
Can any of the company-specific risk be diversified away by investing in both Dunia Virtual 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 Dunia Virtual and Victoria Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunia Virtual Online and Victoria Insurance Tbk, you can compare the effects of market volatilities on Dunia Virtual 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 Dunia Virtual with a short position of Victoria Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunia Virtual and Victoria Insurance.
Diversification Opportunities for Dunia Virtual and Victoria Insurance
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunia and Victoria is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dunia Virtual Online 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 Dunia Virtual 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 Dunia Virtual Online 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 Dunia Virtual i.e., Dunia Virtual and Victoria Insurance go up and down completely randomly.
Pair Corralation between Dunia Virtual and Victoria Insurance
Assuming the 90 days trading horizon Dunia Virtual Online is expected to generate 2.33 times more return on investment than Victoria Insurance. However, Dunia Virtual is 2.33 times more volatile than Victoria Insurance Tbk. It trades about -0.01 of its potential returns per unit of risk. Victoria Insurance Tbk is currently generating about -0.13 per unit of risk. If you would invest 22,600 in Dunia Virtual Online on September 3, 2024 and sell it today you would lose (1,000.00) from holding Dunia Virtual Online or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunia Virtual Online vs. Victoria Insurance Tbk
Performance |
| Timeline |
| Dunia Virtual Online |
| Victoria Insurance Tbk |
Dunia Virtual and Victoria Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunia Virtual and Victoria Insurance
The main advantage of trading using opposite Dunia Virtual and Victoria Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunia Virtual 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.| Dunia Virtual vs. Chandra Asri Petrochemical | Dunia Virtual vs. Bank Negara Indonesia | Dunia Virtual vs. Sumber Alfaria Trijaya | Dunia Virtual vs. Mitra Pinasthika Mustika |
| Victoria Insurance vs. Paninvest Tbk | Victoria Insurance vs. Mitra Pinasthika Mustika | Victoria Insurance vs. Jakarta Int Hotels | Victoria Insurance vs. Asuransi Harta Aman |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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