Correlation Between Victoria Insurance and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Victoria Insurance and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Citatah Tbk.
Diversification Opportunities for Victoria Insurance and Citatah Tbk
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victoria and Citatah is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Citatah Tbk go up and down completely randomly.
Pair Corralation between Victoria Insurance and Citatah Tbk
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to under-perform the Citatah Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Victoria Insurance Tbk is 1.37 times less risky than Citatah Tbk. The stock trades about -0.05 of its potential returns per unit of risk. The Citatah Tbk is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Citatah Tbk on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Citatah Tbk or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Citatah Tbk
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Citatah Tbk |
Victoria Insurance and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Citatah Tbk
The main advantage of trading using opposite Victoria Insurance and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk'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 |
| Citatah Tbk vs. Indointernet Tbk PT | Citatah Tbk vs. Garuda Metalindo Tbk | Citatah Tbk vs. Weha Transportasi Indonesia | Citatah Tbk vs. PT Data Sinergitama |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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