Correlation Between Victoria Investama and Asuransi Harta
Can any of the company-specific risk be diversified away by investing in both Victoria Investama and Asuransi Harta 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 Victoria Investama and Asuransi Harta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victoria Investama Tbk and Asuransi Harta Aman, you can compare the effects of market volatilities on Victoria Investama and Asuransi Harta 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 Victoria Investama with a short position of Asuransi Harta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Investama and Asuransi Harta.
Diversification Opportunities for Victoria Investama and Asuransi Harta
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victoria and Asuransi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Investama Tbk and Asuransi Harta Aman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Harta Aman and Victoria 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 Victoria Investama Tbk are associated (or correlated) with Asuransi Harta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Harta Aman has no effect on the direction of Victoria Investama i.e., Victoria Investama and Asuransi Harta go up and down completely randomly.
Pair Corralation between Victoria Investama and Asuransi Harta
Assuming the 90 days trading horizon Victoria Investama Tbk is expected to generate 2.67 times more return on investment than Asuransi Harta. However, Victoria Investama is 2.67 times more volatile than Asuransi Harta Aman. It trades about 0.21 of its potential returns per unit of risk. Asuransi Harta Aman is currently generating about -0.24 per unit of risk. If you would invest 14,900 in Victoria Investama Tbk on August 26, 2024 and sell it today you would earn a total of 7,700 from holding Victoria Investama Tbk or generate 51.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Investama Tbk vs. Asuransi Harta Aman
Performance |
| Timeline |
| Victoria Investama Tbk |
| Asuransi Harta Aman |
Victoria Investama and Asuransi Harta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Investama and Asuransi Harta
The main advantage of trading using opposite Victoria Investama and Asuransi Harta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Investama position performs unexpectedly, Asuransi Harta 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 Harta will offset losses from the drop in Asuransi Harta's long position.| Victoria Investama vs. Paninvest Tbk | Victoria Investama vs. Panin Sekuritas Tbk | Victoria Investama vs. Wahana Ottomitra Multiartha | Victoria Investama vs. Lenox Pasifik Investama |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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