Correlation Between Pelayaran Nelly and Weha Transportasi
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nelly and Weha Transportasi 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 Pelayaran Nelly and Weha Transportasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelayaran Nelly Dwi and Weha Transportasi Indonesia, you can compare the effects of market volatilities on Pelayaran Nelly and Weha Transportasi 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 Pelayaran Nelly with a short position of Weha Transportasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and Weha Transportasi.
Diversification Opportunities for Pelayaran Nelly and Weha Transportasi
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pelayaran and Weha is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and Weha Transportasi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weha Transportasi and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with Weha Transportasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weha Transportasi has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and Weha Transportasi go up and down completely randomly.
Pair Corralation between Pelayaran Nelly and Weha Transportasi
Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to generate 0.58 times more return on investment than Weha Transportasi. However, Pelayaran Nelly Dwi is 1.72 times less risky than Weha Transportasi. It trades about -0.02 of its potential returns per unit of risk. Weha Transportasi Indonesia is currently generating about -0.03 per unit of risk. If you would invest 49,337 in Pelayaran Nelly Dwi on September 1, 2024 and sell it today you would lose (3,937) from holding Pelayaran Nelly Dwi or give up 7.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.61% |
| Values | Daily Returns |
Pelayaran Nelly Dwi vs. Weha Transportasi Indonesia
Performance |
| Timeline |
| Pelayaran Nelly Dwi |
| Weha Transportasi |
Pelayaran Nelly and Weha Transportasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nelly and Weha Transportasi
The main advantage of trading using opposite Pelayaran Nelly and Weha Transportasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nelly position performs unexpectedly, Weha Transportasi 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 Weha Transportasi will offset losses from the drop in Weha Transportasi's long position.| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia Tbk |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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