Correlation Between Harum Energy and Wintermar Offshore
Can any of the company-specific risk be diversified away by investing in both Harum Energy 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 Harum Energy and Wintermar Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harum Energy Tbk and Wintermar Offshore Marine, you can compare the effects of market volatilities on Harum Energy 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 Harum Energy with a short position of Wintermar Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harum Energy and Wintermar Offshore.
Diversification Opportunities for Harum Energy and Wintermar Offshore
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harum and Wintermar is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Harum Energy Tbk 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 Harum Energy 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 Harum Energy Tbk 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 Harum Energy i.e., Harum Energy and Wintermar Offshore go up and down completely randomly.
Pair Corralation between Harum Energy and Wintermar Offshore
Assuming the 90 days trading horizon Harum Energy Tbk is expected to under-perform the Wintermar Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Harum Energy Tbk is 1.31 times less risky than Wintermar Offshore. The stock trades about -0.02 of its potential returns per unit of risk. The Wintermar Offshore Marine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 31,882 in Wintermar Offshore Marine on September 13, 2024 and sell it today you would earn a total of 13,918 from holding Wintermar Offshore Marine or generate 43.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harum Energy Tbk vs. Wintermar Offshore Marine
Performance |
| Timeline |
| Harum Energy Tbk |
| Wintermar Offshore Marine |
Harum Energy and Wintermar Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harum Energy and Wintermar Offshore
The main advantage of trading using opposite Harum Energy and Wintermar Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harum Energy 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.| Harum Energy vs. Indo Tambangraya Megah | Harum Energy vs. Indika Energy Tbk | Harum Energy vs. Adaro Energy Tbk | Harum Energy vs. Akr Corporindo Tbk |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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