Correlation Between Visi Media and Supreme Cable
Can any of the company-specific risk be diversified away by investing in both Visi Media and Supreme Cable 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 Visi Media and Supreme Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visi Media Asia and Supreme Cable Manufacturing, you can compare the effects of market volatilities on Visi Media and Supreme Cable 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 Visi Media with a short position of Supreme Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Supreme Cable.
Diversification Opportunities for Visi Media and Supreme Cable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Supreme is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Supreme Cable Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supreme Cable Manufa and Visi Media 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 Visi Media Asia are associated (or correlated) with Supreme Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supreme Cable Manufa has no effect on the direction of Visi Media i.e., Visi Media and Supreme Cable go up and down completely randomly.
Pair Corralation between Visi Media and Supreme Cable
Assuming the 90 days trading horizon Visi Media Asia is expected to generate 2.03 times more return on investment than Supreme Cable. However, Visi Media is 2.03 times more volatile than Supreme Cable Manufacturing. It trades about 0.06 of its potential returns per unit of risk. Supreme Cable Manufacturing is currently generating about 0.03 per unit of risk. If you would invest 500.00 in Visi Media Asia on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Visi Media Asia or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visi Media Asia vs. Supreme Cable Manufacturing
Performance |
| Timeline |
| Visi Media Asia |
| Supreme Cable Manufa |
Visi Media and Supreme Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Supreme Cable
The main advantage of trading using opposite Visi Media and Supreme Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media position performs unexpectedly, Supreme Cable 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 Supreme Cable will offset losses from the drop in Supreme Cable's long position.| Visi Media vs. Indosat Tbk | Visi Media vs. Energi Mega Persada | Visi Media vs. Mitra Pinasthika Mustika | Visi Media vs. Jakarta Int Hotels |
| Supreme Cable vs. Intanwijaya Internasional Tbk | Supreme Cable vs. Champion Pacific Indonesia | Supreme Cable vs. Mitra Pinasthika Mustika | Supreme Cable vs. Jakarta Int Hotels |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |