Correlation Between Wahana Inti and Dayamitra Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Wahana Inti and Dayamitra Telekomunikasi 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 Wahana Inti and Dayamitra Telekomunikasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Inti MakmurTbk and Dayamitra Telekomunikasi PT, you can compare the effects of market volatilities on Wahana Inti and Dayamitra Telekomunikasi 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 Wahana Inti with a short position of Dayamitra Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Inti and Dayamitra Telekomunikasi.
Diversification Opportunities for Wahana Inti and Dayamitra Telekomunikasi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wahana and Dayamitra is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Inti MakmurTbk and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi and Wahana Inti 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 Wahana Inti MakmurTbk are associated (or correlated) with Dayamitra Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dayamitra Telekomunikasi has no effect on the direction of Wahana Inti i.e., Wahana Inti and Dayamitra Telekomunikasi go up and down completely randomly.
Pair Corralation between Wahana Inti and Dayamitra Telekomunikasi
Assuming the 90 days trading horizon Wahana Inti MakmurTbk is expected to generate 3.21 times more return on investment than Dayamitra Telekomunikasi. However, Wahana Inti is 3.21 times more volatile than Dayamitra Telekomunikasi PT. It trades about 0.04 of its potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about 0.0 per unit of risk. If you would invest 7,200 in Wahana Inti MakmurTbk on September 2, 2024 and sell it today you would earn a total of 1,400 from holding Wahana Inti MakmurTbk or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wahana Inti MakmurTbk vs. Dayamitra Telekomunikasi PT
Performance |
| Timeline |
| Wahana Inti MakmurTbk |
| Dayamitra Telekomunikasi |
Wahana Inti and Dayamitra Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Inti and Dayamitra Telekomunikasi
The main advantage of trading using opposite Wahana Inti and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Inti position performs unexpectedly, Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi will offset losses from the drop in Dayamitra Telekomunikasi's long position.| Wahana Inti vs. Habco Trans Maritima | Wahana Inti vs. PT Cilacap Samudera | Wahana Inti vs. PT Sari Kreasi | Wahana Inti vs. Autopedia Sukses Lestari |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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