Correlation Between Victoria Insurance and Bank Cimb
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Bank Cimb 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 Bank Cimb 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 Bank Cimb Niaga, you can compare the effects of market volatilities on Victoria Insurance and Bank Cimb 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 Bank Cimb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Bank Cimb.
Diversification Opportunities for Victoria Insurance and Bank Cimb
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Victoria and Bank is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Bank Cimb Niaga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Cimb Niaga 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 Bank Cimb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Cimb Niaga has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Bank Cimb go up and down completely randomly.
Pair Corralation between Victoria Insurance and Bank Cimb
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to generate 1.24 times more return on investment than Bank Cimb. However, Victoria Insurance is 1.24 times more volatile than Bank Cimb Niaga. It trades about 0.08 of its potential returns per unit of risk. Bank Cimb Niaga is currently generating about -0.12 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 200.00 from holding Victoria Insurance Tbk or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Bank Cimb Niaga
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Bank Cimb Niaga |
Victoria Insurance and Bank Cimb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Bank Cimb
The main advantage of trading using opposite Victoria Insurance and Bank Cimb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Bank Cimb 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 Bank Cimb will offset losses from the drop in Bank Cimb'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 |
| Bank Cimb vs. Bank Danamon Indonesia | Bank Cimb vs. Bank Maybank Indonesia | Bank Cimb vs. Bank Pan Indonesia | Bank Cimb vs. Indosat Tbk |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |