Correlation Between Victoria Insurance and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Maming Enam 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 Insurance and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victoria Insurance Tbk and Maming Enam Sembilan, you can compare the effects of market volatilities on Victoria Insurance and Maming Enam 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 Insurance with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Maming Enam.
Diversification Opportunities for Victoria Insurance and Maming Enam
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victoria and Maming is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Victoria Insurance 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 Insurance Tbk are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Maming Enam go up and down completely randomly.
Pair Corralation between Victoria Insurance and Maming Enam
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to generate 0.6 times more return on investment than Maming Enam. However, Victoria Insurance Tbk is 1.66 times less risky than Maming Enam. It trades about 0.01 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.17 per unit of risk. If you would invest 10,400 in Victoria Insurance Tbk on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Victoria Insurance Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Maming Enam Sembilan
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Maming Enam Sembilan |
Victoria Insurance and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Maming Enam
The main advantage of trading using opposite Victoria Insurance and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Victoria Insurance vs. Victoria Investama Tbk | Victoria Insurance vs. Verena Multi Finance | Victoria Insurance vs. Asuransi Harta Aman | Victoria Insurance vs. Trust Finance Indonesia |
| Maming Enam vs. Lotte Chemical Titan | Maming Enam vs. PT Homeco Victoria | Maming Enam vs. PT Carsurin Tbk | Maming Enam vs. Chandra Asri Petrochemical |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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