Correlation Between Wulandari Bangun and Wahana Pronatural
Can any of the company-specific risk be diversified away by investing in both Wulandari Bangun and Wahana Pronatural 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 Wulandari Bangun and Wahana Pronatural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wulandari Bangun Laksana and Wahana Pronatural, you can compare the effects of market volatilities on Wulandari Bangun and Wahana Pronatural 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 Wulandari Bangun with a short position of Wahana Pronatural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wulandari Bangun and Wahana Pronatural.
Diversification Opportunities for Wulandari Bangun and Wahana Pronatural
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wulandari and Wahana is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Wulandari Bangun Laksana and Wahana Pronatural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Pronatural and Wulandari Bangun 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 Wulandari Bangun Laksana are associated (or correlated) with Wahana Pronatural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Pronatural has no effect on the direction of Wulandari Bangun i.e., Wulandari Bangun and Wahana Pronatural go up and down completely randomly.
Pair Corralation between Wulandari Bangun and Wahana Pronatural
Assuming the 90 days trading horizon Wulandari Bangun Laksana is expected to under-perform the Wahana Pronatural. But the stock apears to be less risky and, when comparing its historical volatility, Wulandari Bangun Laksana is 18.77 times less risky than Wahana Pronatural. The stock trades about -0.07 of its potential returns per unit of risk. The Wahana Pronatural is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,300 in Wahana Pronatural on December 3, 2024 and sell it today you would earn a total of 3,700 from holding Wahana Pronatural or generate 39.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Wulandari Bangun Laksana vs. Wahana Pronatural
Performance |
| Timeline |
| Wulandari Bangun Laksana |
| Wahana Pronatural |
Wulandari Bangun and Wahana Pronatural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wulandari Bangun and Wahana Pronatural
The main advantage of trading using opposite Wulandari Bangun and Wahana Pronatural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wulandari Bangun position performs unexpectedly, Wahana Pronatural 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 Wahana Pronatural will offset losses from the drop in Wahana Pronatural's long position.| Wulandari Bangun vs. Victoria Insurance Tbk | ||
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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