Correlation Between COMBA TELECOM and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM 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 COMBA TELECOM and PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and PT Wintermar Offshore, you can compare the effects of market volatilities on COMBA TELECOM 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 COMBA TELECOM with a short position of PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and PT Wintermar.
Diversification Opportunities for COMBA TELECOM and PT Wintermar
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMBA and W6O is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST 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 COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and PT Wintermar go up and down completely randomly.
Pair Corralation between COMBA TELECOM and PT Wintermar
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to under-perform the PT Wintermar. But the stock apears to be less risky and, when comparing its historical volatility, COMBA TELECOM SYST is 6.86 times less risky than PT Wintermar. The stock trades about -0.21 of its potential returns per unit of risk. The PT Wintermar Offshore is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2.50 in PT Wintermar Offshore on November 4, 2024 and sell it today you would lose (0.40) from holding PT Wintermar Offshore or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. PT Wintermar Offshore
Performance |
| Timeline |
| COMBA TELECOM SYST |
| PT Wintermar Offshore |
COMBA TELECOM and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and PT Wintermar
The main advantage of trading using opposite COMBA TELECOM and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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.| COMBA TELECOM vs. Inspire Medical Systems | COMBA TELECOM vs. Fortescue Metals Group | COMBA TELECOM vs. Medical Properties Trust | COMBA TELECOM vs. Merit Medical Systems |
| PT Wintermar vs. OPKO HEALTH | PT Wintermar vs. ANTA SPORTS PRODUCT | PT Wintermar vs. SOEDER SPORTFISKE AB | PT Wintermar vs. COLUMBIA SPORTSWEAR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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