Correlation Between Wulandari Bangun and PT Winner
Can any of the company-specific risk be diversified away by investing in both Wulandari Bangun and PT Winner 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 PT Winner 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 PT Winner Nusantara, you can compare the effects of market volatilities on Wulandari Bangun and PT Winner 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 PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wulandari Bangun and PT Winner.
Diversification Opportunities for Wulandari Bangun and PT Winner
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wulandari and WINR is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Wulandari Bangun Laksana and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Wulandari Bangun i.e., Wulandari Bangun and PT Winner go up and down completely randomly.
Pair Corralation between Wulandari Bangun and PT Winner
Assuming the 90 days trading horizon Wulandari Bangun Laksana is expected to under-perform the PT Winner. But the stock apears to be less risky and, when comparing its historical volatility, Wulandari Bangun Laksana is 2.08 times less risky than PT Winner. The stock trades about -0.28 of its potential returns per unit of risk. The PT Winner Nusantara is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,700 in PT Winner Nusantara on August 30, 2024 and sell it today you would lose (200.00) from holding PT Winner Nusantara or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wulandari Bangun Laksana vs. PT Winner Nusantara
Performance |
| Timeline |
| Wulandari Bangun Laksana |
| PT Winner Nusantara |
Wulandari Bangun and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wulandari Bangun and PT Winner
The main advantage of trading using opposite Wulandari Bangun and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wulandari Bangun position performs unexpectedly, PT Winner 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 PT Winner will offset losses from the drop in PT Winner's long position.| Wulandari Bangun vs. Enseval Putra Megatrading | Wulandari Bangun vs. Envy Technologies Indonesia | Wulandari Bangun vs. Inocycle Technology Tbk | Wulandari Bangun vs. Nanotech Indonesia Global |
| PT Winner vs. Pollux Properti Indonesia | PT Winner vs. Maha Properti Indonesia | PT Winner vs. Mega Manunggal Property | PT Winner vs. Urban Jakarta Propertindo |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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