Correlation Between Clipan Finance and Wahana Ottomitra
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Wahana Ottomitra 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 Clipan Finance and Wahana Ottomitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Wahana Ottomitra Multiartha, you can compare the effects of market volatilities on Clipan Finance and Wahana Ottomitra 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 Clipan Finance with a short position of Wahana Ottomitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Wahana Ottomitra.
Diversification Opportunities for Clipan Finance and Wahana Ottomitra
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clipan and Wahana is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Wahana Ottomitra Multiartha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Ottomitra Mul and Clipan Finance 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 Clipan Finance Indonesia are associated (or correlated) with Wahana Ottomitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Ottomitra Mul has no effect on the direction of Clipan Finance i.e., Clipan Finance and Wahana Ottomitra go up and down completely randomly.
Pair Corralation between Clipan Finance and Wahana Ottomitra
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Wahana Ottomitra. In addition to that, Clipan Finance is 1.79 times more volatile than Wahana Ottomitra Multiartha. It trades about -0.1 of its total potential returns per unit of risk. Wahana Ottomitra Multiartha is currently generating about 0.01 per unit of volatility. If you would invest 34,800 in Wahana Ottomitra Multiartha on November 4, 2024 and sell it today you would earn a total of 400.00 from holding Wahana Ottomitra Multiartha or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Wahana Ottomitra Multiartha
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Wahana Ottomitra Mul |
Clipan Finance and Wahana Ottomitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Wahana Ottomitra
The main advantage of trading using opposite Clipan Finance and Wahana Ottomitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Wahana Ottomitra 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 Ottomitra will offset losses from the drop in Wahana Ottomitra's long position.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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