Correlation Between Cass Information and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both Cass Information and PT Wintermar 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 Cass Information and PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and PT Wintermar Offshore, you can compare the effects of market volatilities on Cass Information and PT Wintermar 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 Cass Information with a short position of PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and PT Wintermar.
Diversification Opportunities for Cass Information and PT Wintermar
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and W6O is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore and Cass Information 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 Cass Information Systems are associated (or correlated) with PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of Cass Information i.e., Cass Information and PT Wintermar go up and down completely randomly.
Pair Corralation between Cass Information and PT Wintermar
Assuming the 90 days horizon Cass Information Systems is expected to under-perform the PT Wintermar. But the stock apears to be less risky and, when comparing its historical volatility, Cass Information Systems is 5.2 times less risky than PT Wintermar. The stock trades about 0.0 of its potential returns per unit of risk. The PT Wintermar Offshore is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.10 in PT Wintermar Offshore on October 16, 2024 and sell it today you would earn a total of 1.10 from holding PT Wintermar Offshore or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. PT Wintermar Offshore
Performance |
| Timeline |
| Cass Information Systems |
| PT Wintermar Offshore |
Cass Information and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and PT Wintermar
The main advantage of trading using opposite Cass Information and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, PT Wintermar 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 Wintermar will offset losses from the drop in PT Wintermar's long position.| Cass Information vs. OFFICE DEPOT | Cass Information vs. Beazer Homes USA | Cass Information vs. Neinor Homes SA | Cass Information vs. Hisense Home Appliances |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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