Correlation Between Victoria Insurance and PT Data
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and PT Data 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 PT Data 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 PT Data Sinergitama, you can compare the effects of market volatilities on Victoria Insurance and PT Data 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 PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and PT Data.
Diversification Opportunities for Victoria Insurance and PT Data
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Victoria and ELIT is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama 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 PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and PT Data go up and down completely randomly.
Pair Corralation between Victoria Insurance and PT Data
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to under-perform the PT Data. But the stock apears to be less risky and, when comparing its historical volatility, Victoria Insurance Tbk is 1.22 times less risky than PT Data. The stock trades about -0.03 of its potential returns per unit of risk. The PT Data Sinergitama is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,500 in PT Data Sinergitama on October 26, 2024 and sell it today you would earn a total of 1,100 from holding PT Data Sinergitama or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. PT Data Sinergitama
Performance |
| Timeline |
| Victoria Insurance Tbk |
| PT Data Sinergitama |
Victoria Insurance and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and PT Data
The main advantage of trading using opposite Victoria Insurance and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, PT Data 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 PT Data will offset losses from the drop in PT Data'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 |
| PT Data vs. Victoria Insurance Tbk | PT Data vs. Lippo General Insurance | PT Data vs. PT UBC Medical | PT Data vs. Dharma Polimetal 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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