Correlation Between Bank Mayapada and Victoria Insurance
Can any of the company-specific risk be diversified away by investing in both Bank Mayapada 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 Bank Mayapada and Victoria Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mayapada Internasional and Victoria Insurance Tbk, you can compare the effects of market volatilities on Bank Mayapada 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 Bank Mayapada with a short position of Victoria Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mayapada and Victoria Insurance.
Diversification Opportunities for Bank Mayapada and Victoria Insurance
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Victoria is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mayapada Internasional 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 Bank Mayapada 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 Bank Mayapada Internasional 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 Bank Mayapada i.e., Bank Mayapada and Victoria Insurance go up and down completely randomly.
Pair Corralation between Bank Mayapada and Victoria Insurance
Assuming the 90 days trading horizon Bank Mayapada is expected to generate 3.04 times less return on investment than Victoria Insurance. In addition to that, Bank Mayapada is 1.01 times more volatile than Victoria Insurance Tbk. It trades about 0.01 of its total potential returns per unit of risk. Victoria Insurance Tbk is currently generating about 0.03 per unit of volatility. If you would invest 11,000 in Victoria Insurance Tbk on October 24, 2024 and sell it today you would earn a total of 100.00 from holding Victoria Insurance Tbk or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mayapada Internasional vs. Victoria Insurance Tbk
Performance |
| Timeline |
| Bank Mayapada Intern |
| Victoria Insurance Tbk |
Bank Mayapada and Victoria Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mayapada and Victoria Insurance
The main advantage of trading using opposite Bank Mayapada and Victoria Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mayapada 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.| Bank Mayapada vs. Bank Mega Tbk | Bank Mayapada vs. Bank Ocbc Nisp | Bank Mayapada vs. Bank Windu Kentjana | Bank Mayapada vs. Bank Artha Graha |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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