Correlation Between PT Data and Wir Asia
Can any of the company-specific risk be diversified away by investing in both PT Data and Wir Asia 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 Data and Wir Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Data Sinergitama and Wir Asia Tbk, you can compare the effects of market volatilities on PT Data and Wir Asia 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 Data with a short position of Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Wir Asia.
Diversification Opportunities for PT Data and Wir Asia
Poor diversification
The 3 months correlation between ELIT and Wir is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia Tbk and PT Data 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 Data Sinergitama are associated (or correlated) with Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of PT Data i.e., PT Data and Wir Asia go up and down completely randomly.
Pair Corralation between PT Data and Wir Asia
Assuming the 90 days trading horizon PT Data Sinergitama is expected to generate 0.69 times more return on investment than Wir Asia. However, PT Data Sinergitama is 1.45 times less risky than Wir Asia. It trades about 0.07 of its potential returns per unit of risk. Wir Asia Tbk is currently generating about 0.04 per unit of risk. If you would invest 10,700 in PT Data Sinergitama on August 30, 2024 and sell it today you would earn a total of 800.00 from holding PT Data Sinergitama or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Data Sinergitama vs. Wir Asia Tbk
Performance |
| Timeline |
| PT Data Sinergitama |
| Wir Asia Tbk |
PT Data and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Wir Asia
The main advantage of trading using opposite PT Data and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia's long position.| PT Data vs. Ciptadana Asset Management | PT Data vs. Diamond Food Indonesia | PT Data vs. Intermedia Capital Tbk | PT Data vs. Mahaka Media Tbk |
| Wir Asia vs. Indointernet Tbk PT | Wir Asia vs. Multipolar Technology Tbk | Wir Asia vs. Indosterling Technomedia Tbk | Wir Asia vs. PT Data Sinergitama |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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