Correlation Between PT Wahana and Campina Ice
Can any of the company-specific risk be diversified away by investing in both PT Wahana and Campina Ice 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 PT Wahana and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Wahana Interfood and Campina Ice Cream, you can compare the effects of market volatilities on PT Wahana and Campina Ice 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 PT Wahana with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wahana and Campina Ice.
Diversification Opportunities for PT Wahana and Campina Ice
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COCO and Campina is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding PT Wahana Interfood and Campina Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campina Ice Cream and PT Wahana 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 PT Wahana Interfood are associated (or correlated) with Campina Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campina Ice Cream has no effect on the direction of PT Wahana i.e., PT Wahana and Campina Ice go up and down completely randomly.
Pair Corralation between PT Wahana and Campina Ice
Assuming the 90 days trading horizon PT Wahana Interfood is expected to generate 0.89 times more return on investment than Campina Ice. However, PT Wahana Interfood is 1.13 times less risky than Campina Ice. It trades about -0.15 of its potential returns per unit of risk. Campina Ice Cream is currently generating about -0.23 per unit of risk. If you would invest 9,300 in PT Wahana Interfood on August 29, 2024 and sell it today you would lose (600.00) from holding PT Wahana Interfood or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wahana Interfood vs. Campina Ice Cream
Performance |
| Timeline |
| PT Wahana Interfood |
| Campina Ice Cream |
PT Wahana and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wahana and Campina Ice
The main advantage of trading using opposite PT Wahana and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wahana position performs unexpectedly, Campina Ice 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 Campina Ice will offset losses from the drop in Campina Ice's long position.| PT Wahana vs. Garudafood Putra Putri | PT Wahana vs. Sentra Food Indonesia | PT Wahana vs. Campina Ice Cream | PT Wahana vs. Diamond Food Indonesia |
| Campina Ice vs. Sariguna Primatirta PT | Campina Ice vs. Garudafood Putra Putri | Campina Ice vs. Buyung Poetra Sembada | Campina Ice vs. Integra Indocabinet 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |