Correlation Between Saratoga Investama and Victoria Insurance
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama 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 Saratoga Investama and Victoria Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investama Sedaya and Victoria Insurance Tbk, you can compare the effects of market volatilities on Saratoga Investama 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 Saratoga Investama with a short position of Victoria Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Victoria Insurance.
Diversification Opportunities for Saratoga Investama and Victoria Insurance
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saratoga and Victoria is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya 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 Saratoga Investama 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 Saratoga Investama Sedaya 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 Saratoga Investama i.e., Saratoga Investama and Victoria Insurance go up and down completely randomly.
Pair Corralation between Saratoga Investama and Victoria Insurance
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 3.09 times more return on investment than Victoria Insurance. However, Saratoga Investama is 3.09 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 -0.14 per unit of risk. If you would invest 224,000 in Saratoga Investama Sedaya on August 30, 2024 and sell it today you would lose (2,000) from holding Saratoga Investama Sedaya or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Victoria Insurance Tbk
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Victoria Insurance Tbk |
Saratoga Investama and Victoria Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Victoria Insurance
The main advantage of trading using opposite Saratoga Investama and Victoria Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama 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.| Saratoga Investama vs. Bank Cimb Niaga | Saratoga Investama vs. Indosat Tbk | Saratoga Investama vs. Astra Agro Lestari | Saratoga Investama vs. Bank Mandiri Persero |
| Victoria Insurance vs. Bank Cimb Niaga | Victoria Insurance vs. Indosat Tbk | Victoria Insurance vs. Astra Agro Lestari | Victoria Insurance vs. Bank Mandiri Persero |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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