Correlation Between Victoria Insurance and Maskapai Reasuransi
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Maskapai Reasuransi 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 Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia, you can compare the effects of market volatilities on Victoria Insurance and Maskapai Reasuransi 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 Maskapai Reasuransi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Maskapai Reasuransi.
Diversification Opportunities for Victoria Insurance and Maskapai Reasuransi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Victoria and Maskapai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Maskapai Reasuransi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maskapai Reasuransi 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 Maskapai Reasuransi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maskapai Reasuransi has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Maskapai Reasuransi go up and down completely randomly.
Pair Corralation between Victoria Insurance and Maskapai Reasuransi
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to generate 0.66 times more return on investment than Maskapai Reasuransi. However, Victoria Insurance Tbk is 1.52 times less risky than Maskapai Reasuransi. It trades about -0.02 of its potential returns per unit of risk. Maskapai Reasuransi Indonesia is currently generating about -0.19 per unit of risk. If you would invest 11,200 in Victoria Insurance Tbk on October 9, 2024 and sell it today you would lose (100.00) from holding Victoria Insurance Tbk or give up 0.89% 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. Maskapai Reasuransi Indonesia
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Maskapai Reasuransi |
Victoria Insurance and Maskapai Reasuransi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Maskapai Reasuransi
The main advantage of trading using opposite Victoria Insurance and Maskapai Reasuransi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Maskapai Reasuransi 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 Maskapai Reasuransi will offset losses from the drop in Maskapai Reasuransi's long position.| Victoria Insurance vs. Maskapai Reasuransi Indonesia | Victoria Insurance vs. Lenox Pasifik Investama | Victoria Insurance vs. Paninvest Tbk | Victoria Insurance vs. Bank Mayapada Internasional |
| Maskapai Reasuransi vs. Lenox Pasifik Investama | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Bank Mayapada Internasional | Maskapai Reasuransi vs. Asuransi Dayin Mitra |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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