Correlation Between Victoria Insurance and Waskita Beton
Can any of the company-specific risk be diversified away by investing in both Victoria Insurance and Waskita Beton 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 Waskita Beton 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 Waskita Beton Precast, you can compare the effects of market volatilities on Victoria Insurance and Waskita Beton 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 Waskita Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Insurance and Waskita Beton.
Diversification Opportunities for Victoria Insurance and Waskita Beton
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victoria and Waskita is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Insurance Tbk and Waskita Beton Precast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waskita Beton Precast 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 Waskita Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waskita Beton Precast has no effect on the direction of Victoria Insurance i.e., Victoria Insurance and Waskita Beton go up and down completely randomly.
Pair Corralation between Victoria Insurance and Waskita Beton
Assuming the 90 days trading horizon Victoria Insurance Tbk is expected to generate 0.43 times more return on investment than Waskita Beton. However, Victoria Insurance Tbk is 2.31 times less risky than Waskita Beton. It trades about -0.18 of its potential returns per unit of risk. Waskita Beton Precast is currently generating about -0.24 per unit of risk. If you would invest 11,900 in Victoria Insurance Tbk on September 1, 2024 and sell it today you would lose (600.00) from holding Victoria Insurance Tbk or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victoria Insurance Tbk vs. Waskita Beton Precast
Performance |
| Timeline |
| Victoria Insurance Tbk |
| Waskita Beton Precast |
Victoria Insurance and Waskita Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victoria Insurance and Waskita Beton
The main advantage of trading using opposite Victoria Insurance and Waskita Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Insurance position performs unexpectedly, Waskita Beton 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 Waskita Beton will offset losses from the drop in Waskita Beton'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 |
| Waskita Beton vs. Intermedia Capital Tbk | Waskita Beton vs. Bank Ocbc Nisp | Waskita Beton vs. Krakatau Steel Persero | Waskita Beton vs. First Media 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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