Correlation Between Victoria Insurance and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and GoTo Gojek 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 GoTo Gojek 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 GoTo Gojek Tokopedia, you can compare the effects of market volatilities on Victoria Insurance and GoTo Gojek 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 GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and GoTo Gojek.
Diversification Opportunities for Victoria Insurance and GoTo Gojek
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victoria and GoTo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and GoTo Gojek Tokopedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoTo Gojek Tokopedia 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 GoTo Gojek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoTo Gojek Tokopedia has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and GoTo Gojek go up and down completely randomly.
Pair Corralation between Victoria Insurance and GoTo Gojek
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to under-perform the GoTo Gojek. In addition to that, Victoria Insurance is 1.7 times more volatile than GoTo Gojek Tokopedia. It trades about -0.01 of its total potential returns per unit of risk. GoTo Gojek Tokopedia is currently generating about 0.03 per unit of volatility. If you would invest 7,100 in GoTo Gojek Tokopedia on August 27, 2024 and sell it today you would earn a total of 700.00 from holding GoTo Gojek Tokopedia or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| Victoria Insurance Tbk |
| GoTo Gojek Tokopedia |
Victoria Insurance and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and GoTo Gojek
The main advantage of trading using opposite Victoria Insurance and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, GoTo Gojek 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 GoTo Gojek will offset losses from the drop in GoTo Gojek'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 |
| GoTo Gojek vs. M Cash Integrasi | GoTo Gojek vs. NFC Indonesia PT | GoTo Gojek vs. Digital Mediatama Maxima | GoTo Gojek vs. Kioson Komersial Indonesia |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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