Correlation Between Victoria Insurance and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Victoria Insurance and Graha Andrasentra 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 Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Graha Andrasentra.
Diversification Opportunities for Victoria Insurance and Graha Andrasentra
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Victoria and Graha is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra 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 Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Victoria Insurance and Graha Andrasentra
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to generate 0.74 times more return on investment than Graha Andrasentra. However, Victoria Insurance Tbk is 1.34 times less risky than Graha Andrasentra. It trades about 0.0 of its potential returns per unit of risk. Graha Andrasentra Propertindo is currently generating about -0.08 per unit of risk. If you would invest 15,600 in Victoria Insurance Tbk on September 14, 2024 and sell it today you would lose (4,400) from holding Victoria Insurance Tbk or give up 28.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Graha Andrasentra |
Victoria Insurance and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Graha Andrasentra
The main advantage of trading using opposite Victoria Insurance and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra's long position.| Victoria Insurance vs. Paninvest Tbk | Victoria Insurance vs. Maskapai Reasuransi Indonesia | Victoria Insurance vs. Panin Sekuritas Tbk | Victoria Insurance vs. Wahana Ottomitra Multiartha |
| Graha Andrasentra vs. Equity Development Investment | Graha Andrasentra vs. Victoria Insurance Tbk | Graha Andrasentra vs. Indointernet Tbk PT | Graha Andrasentra vs. Wintermar Offshore Marine |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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