Correlation Between Victoria Insurance and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Paninvest Tbk 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 Paninvest Tbk 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 Paninvest Tbk, you can compare the effects of market volatilities on Victoria Insurance and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Paninvest Tbk.
Diversification Opportunities for Victoria Insurance and Paninvest Tbk
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Victoria and Paninvest is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Victoria Insurance and Paninvest Tbk
Assuming the 90 days trading horizon Victoria Insurance is expected to generate 554.38 times less return on investment than Paninvest Tbk. But when comparing it to its historical volatility, Victoria Insurance Tbk is 5.7 times less risky than Paninvest Tbk. It trades about 0.0 of its potential returns per unit of risk. Paninvest Tbk is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 83,000 in Paninvest Tbk on January 21, 2025 and sell it today you would earn a total of 23,500 from holding Paninvest Tbk or generate 28.31% 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. Paninvest Tbk
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Paninvest Tbk |
Victoria Insurance and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Paninvest Tbk
The main advantage of trading using opposite Victoria Insurance and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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