Correlation Between Visa and Asuransi Ramayana
Can any of the company-specific risk be diversified away by investing in both Visa and Asuransi Ramayana 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 Visa and Asuransi Ramayana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Asuransi Ramayana Tbk, you can compare the effects of market volatilities on Visa and Asuransi Ramayana 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 Visa with a short position of Asuransi Ramayana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Asuransi Ramayana.
Diversification Opportunities for Visa and Asuransi Ramayana
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Asuransi is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Asuransi Ramayana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Ramayana Tbk and Visa 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 Visa Class A are associated (or correlated) with Asuransi Ramayana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Ramayana Tbk has no effect on the direction of Visa i.e., Visa and Asuransi Ramayana go up and down completely randomly.
Pair Corralation between Visa and Asuransi Ramayana
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.93 times more return on investment than Asuransi Ramayana. However, Visa Class A is 1.08 times less risky than Asuransi Ramayana. It trades about 0.1 of its potential returns per unit of risk. Asuransi Ramayana Tbk is currently generating about -0.03 per unit of risk. If you would invest 24,113 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 7,395 from holding Visa Class A or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.54% |
| Values | Daily Returns |
Visa Class A vs. Asuransi Ramayana Tbk
Performance |
| Timeline |
| Visa Class A |
| Asuransi Ramayana Tbk |
Visa and Asuransi Ramayana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Asuransi Ramayana
The main advantage of trading using opposite Visa and Asuransi Ramayana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Asuransi Ramayana 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 Asuransi Ramayana will offset losses from the drop in Asuransi Ramayana's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Asuransi Ramayana vs. Asuransi Bintang Tbk | Asuransi Ramayana vs. Asuransi Dayin Mitra | Asuransi Ramayana vs. Asuransi Bina Dana | Asuransi Ramayana vs. Asuransi Jasa Tania |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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