Correlation Between Pelayaran Nelly and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nelly and Wijaya Karya 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 Wijaya Karya 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 Wijaya Karya Beton, you can compare the effects of market volatilities on Pelayaran Nelly and Wijaya Karya 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 Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and Wijaya Karya.
Diversification Opportunities for Pelayaran Nelly and Wijaya Karya
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pelayaran and Wijaya is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and Wijaya Karya Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Beton 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 Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Beton has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and Wijaya Karya go up and down completely randomly.
Pair Corralation between Pelayaran Nelly and Wijaya Karya
Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to generate 0.37 times more return on investment than Wijaya Karya. However, Pelayaran Nelly Dwi is 2.72 times less risky than Wijaya Karya. It trades about -0.04 of its potential returns per unit of risk. Wijaya Karya Beton is currently generating about -0.19 per unit of risk. If you would invest 44,338 in Pelayaran Nelly Dwi on November 27, 2024 and sell it today you would lose (1,538) from holding Pelayaran Nelly Dwi or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pelayaran Nelly Dwi vs. Wijaya Karya Beton
Performance |
| Timeline |
| Pelayaran Nelly Dwi |
| Wijaya Karya Beton |
Pelayaran Nelly and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nelly and Wijaya Karya
The main advantage of trading using opposite Pelayaran Nelly and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nelly position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya's long position.| Pelayaran Nelly vs. Bisi International Tbk | Pelayaran Nelly vs. Sampoerna Agro Tbk | Pelayaran Nelly vs. Akr Corporindo Tbk | Pelayaran Nelly vs. Solusi Bangun Indonesia |
| Wijaya Karya vs. Adhi Karya Persero | Wijaya Karya vs. Waskita Karya Persero | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Jasa Marga 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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