Correlation Between PT Homeco and PT Wahana
Can any of the company-specific risk be diversified away by investing in both PT Homeco and PT Wahana 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 Homeco and PT Wahana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Homeco Victoria and PT Wahana Interfood, you can compare the effects of market volatilities on PT Homeco and PT Wahana 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 Homeco with a short position of PT Wahana. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Homeco and PT Wahana.
Diversification Opportunities for PT Homeco and PT Wahana
Good diversification
The 3 months correlation between LIVE and COCO is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PT Homeco Victoria and PT Wahana Interfood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wahana Interfood and PT Homeco 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 Homeco Victoria are associated (or correlated) with PT Wahana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wahana Interfood has no effect on the direction of PT Homeco i.e., PT Homeco and PT Wahana go up and down completely randomly.
Pair Corralation between PT Homeco and PT Wahana
Assuming the 90 days trading horizon PT Homeco Victoria is expected to generate 2.96 times more return on investment than PT Wahana. However, PT Homeco is 2.96 times more volatile than PT Wahana Interfood. It trades about 0.01 of its potential returns per unit of risk. PT Wahana Interfood is currently generating about -0.14 per unit of risk. If you would invest 20,200 in PT Homeco Victoria on September 2, 2024 and sell it today you would lose (500.00) from holding PT Homeco Victoria or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Homeco Victoria vs. PT Wahana Interfood
Performance |
| Timeline |
| PT Homeco Victoria |
| PT Wahana Interfood |
PT Homeco and PT Wahana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Homeco and PT Wahana
The main advantage of trading using opposite PT Homeco and PT Wahana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Homeco position performs unexpectedly, PT Wahana 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 PT Wahana will offset losses from the drop in PT Wahana's long position.| PT Homeco vs. Surya Citra Media | PT Homeco vs. Ciptadana Asset Management | PT Homeco vs. Smartfren Telecom Tbk | PT Homeco vs. Indointernet Tbk PT |
| PT Wahana vs. Garudafood Putra Putri | PT Wahana vs. Sentra Food Indonesia | PT Wahana vs. Campina Ice Cream | PT Wahana vs. Diamond Food Indonesia |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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