Correlation Between Delta Dunia and Wintermar Offshore
Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Wintermar Offshore 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 Delta Dunia and Wintermar Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Dunia Makmur and Wintermar Offshore Marine, you can compare the effects of market volatilities on Delta Dunia and Wintermar Offshore 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 Delta Dunia with a short position of Wintermar Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Wintermar Offshore.
Diversification Opportunities for Delta Dunia and Wintermar Offshore
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delta and Wintermar is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Wintermar Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintermar Offshore Marine and Delta Dunia 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 Delta Dunia Makmur are associated (or correlated) with Wintermar Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintermar Offshore Marine has no effect on the direction of Delta Dunia i.e., Delta Dunia and Wintermar Offshore go up and down completely randomly.
Pair Corralation between Delta Dunia and Wintermar Offshore
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to generate 1.5 times more return on investment than Wintermar Offshore. However, Delta Dunia is 1.5 times more volatile than Wintermar Offshore Marine. It trades about -0.03 of its potential returns per unit of risk. Wintermar Offshore Marine is currently generating about -0.18 per unit of risk. If you would invest 65,000 in Delta Dunia Makmur on September 14, 2024 and sell it today you would lose (2,000) from holding Delta Dunia Makmur or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Dunia Makmur vs. Wintermar Offshore Marine
Performance |
| Timeline |
| Delta Dunia Makmur |
| Wintermar Offshore Marine |
Delta Dunia and Wintermar Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Wintermar Offshore
The main advantage of trading using opposite Delta Dunia and Wintermar Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Wintermar Offshore 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 Wintermar Offshore will offset losses from the drop in Wintermar Offshore's long position.| Delta Dunia vs. Indika Energy Tbk | Delta Dunia vs. Elnusa Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Energi Mega Persada |
| Wintermar Offshore vs. Harum Energy Tbk | Wintermar Offshore vs. Delta Dunia Makmur | Wintermar Offshore vs. Adi Sarana Armada | Wintermar Offshore vs. Elang Mahkota Teknologi |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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