Correlation Between Victoria Insurance and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology Tbk, you can compare the effects of market volatilities on Victoria Insurance and Inocycle Technology 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 Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Inocycle Technology.
Diversification Opportunities for Victoria Insurance and Inocycle Technology
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Victoria and Inocycle is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology 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 Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Inocycle Technology go up and down completely randomly.
Pair Corralation between Victoria Insurance and Inocycle Technology
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to under-perform the Inocycle Technology. But the stock apears to be less risky and, when comparing its historical volatility, Victoria Insurance Tbk is 2.16 times less risky than Inocycle Technology. The stock trades about -0.13 of its potential returns per unit of risk. The Inocycle Technology Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,500 in Inocycle Technology Tbk on September 3, 2024 and sell it today you would earn a total of 500.00 from holding Inocycle Technology Tbk or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Inocycle Technology Tbk |
Victoria Insurance and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Inocycle Technology
The main advantage of trading using opposite Victoria Insurance and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology's long position.| Victoria Insurance vs. Paninvest Tbk | Victoria Insurance vs. Mitra Pinasthika Mustika | Victoria Insurance vs. Jakarta Int Hotels | Victoria Insurance vs. Asuransi Harta Aman |
| Inocycle Technology vs. Mitra Pinasthika Mustika | Inocycle Technology vs. Jakarta Int Hotels | Inocycle Technology vs. Asuransi Harta Aman | Inocycle Technology vs. Indosterling Technomedia 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |