Correlation Between PT UBC and Victoria Insurance
Can any of the company-specific risk be diversified away by investing in both PT UBC 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 PT UBC and Victoria Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT UBC Medical and Victoria Insurance Tbk, you can compare the effects of market volatilities on PT UBC 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 PT UBC with a short position of Victoria Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and Victoria Insurance.
Diversification Opportunities for PT UBC and Victoria Insurance
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LABS and Victoria is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical 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 PT UBC 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 PT UBC Medical 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 PT UBC i.e., PT UBC and Victoria Insurance go up and down completely randomly.
Pair Corralation between PT UBC and Victoria Insurance
Assuming the 90 days trading horizon PT UBC Medical is expected to generate 0.8 times more return on investment than Victoria Insurance. However, PT UBC Medical is 1.25 times less risky than Victoria Insurance. It trades about 0.01 of its potential returns per unit of risk. Victoria Insurance Tbk is currently generating about -0.02 per unit of risk. If you would invest 13,700 in PT UBC Medical on November 5, 2024 and sell it today you would lose (1,000.00) from holding PT UBC Medical or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.87% |
| Values | Daily Returns |
PT UBC Medical vs. Victoria Insurance Tbk
Performance |
| Timeline |
| PT UBC Medical |
| Victoria Insurance Tbk |
PT UBC and Victoria Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT UBC and Victoria Insurance
The main advantage of trading using opposite PT UBC and Victoria Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT UBC 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.| PT UBC vs. Indo Acidatama Tbk | PT UBC vs. PT Bank Bisnis | PT UBC vs. Pertamina Geothermal Energy | PT UBC vs. Smartfren Telecom Tbk |
| Victoria Insurance vs. Asuransi Dayin Mitra | Victoria Insurance vs. Asuransi Harta Aman | Victoria Insurance vs. Asuransi Bintang Tbk | Victoria Insurance vs. Asuransi Ramayana Tbk |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |