Correlation Between Nusantara Voucher and Wira Global
Can any of the company-specific risk be diversified away by investing in both Nusantara Voucher and Wira Global 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 Nusantara Voucher and Wira Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusantara Voucher Distribution and Wira Global Solusi, you can compare the effects of market volatilities on Nusantara Voucher and Wira Global 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 Nusantara Voucher with a short position of Wira Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusantara Voucher and Wira Global.
Diversification Opportunities for Nusantara Voucher and Wira Global
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nusantara and Wira is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nusantara Voucher Distribution and Wira Global Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wira Global Solusi and Nusantara Voucher 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 Nusantara Voucher Distribution are associated (or correlated) with Wira Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wira Global Solusi has no effect on the direction of Nusantara Voucher i.e., Nusantara Voucher and Wira Global go up and down completely randomly.
Pair Corralation between Nusantara Voucher and Wira Global
Assuming the 90 days trading horizon Nusantara Voucher Distribution is expected to generate 5.51 times more return on investment than Wira Global. However, Nusantara Voucher is 5.51 times more volatile than Wira Global Solusi. It trades about 0.2 of its potential returns per unit of risk. Wira Global Solusi is currently generating about -0.02 per unit of risk. If you would invest 12,100 in Nusantara Voucher Distribution on September 2, 2024 and sell it today you would earn a total of 5,000 from holding Nusantara Voucher Distribution or generate 41.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nusantara Voucher Distribution vs. Wira Global Solusi
Performance |
| Timeline |
| Nusantara Voucher |
| Wira Global Solusi |
Nusantara Voucher and Wira Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusantara Voucher and Wira Global
The main advantage of trading using opposite Nusantara Voucher and Wira Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusantara Voucher position performs unexpectedly, Wira Global 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 Wira Global will offset losses from the drop in Wira Global's long position.| Nusantara Voucher vs. Trimegah Karya Pratama | Nusantara Voucher vs. Surya Biru Murni | Nusantara Voucher vs. Indo Oil Perkasa | Nusantara Voucher vs. Wira Global Solusi |
| Wira Global vs. Trimegah Karya Pratama | Wira Global vs. Global Sukses Solusi | Wira Global vs. Jaya Swarasa Agung | Wira Global vs. RMK Energy PT |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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