Correlation Between Protech Mitra and PT Winner
Can any of the company-specific risk be diversified away by investing in both Protech Mitra and PT Winner 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 Protech Mitra and PT Winner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protech Mitra Perkasa and PT Winner Nusantara, you can compare the effects of market volatilities on Protech Mitra and PT Winner 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 Protech Mitra with a short position of PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protech Mitra and PT Winner.
Diversification Opportunities for Protech Mitra and PT Winner
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Protech and WINR is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Protech Mitra Perkasa and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara and Protech Mitra 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 Protech Mitra Perkasa are associated (or correlated) with PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Protech Mitra i.e., Protech Mitra and PT Winner go up and down completely randomly.
Pair Corralation between Protech Mitra and PT Winner
Assuming the 90 days trading horizon Protech Mitra Perkasa is expected to generate 0.95 times more return on investment than PT Winner. However, Protech Mitra Perkasa is 1.06 times less risky than PT Winner. It trades about 0.03 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about -0.06 per unit of risk. If you would invest 13,800 in Protech Mitra Perkasa on September 12, 2024 and sell it today you would earn a total of 800.00 from holding Protech Mitra Perkasa or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Protech Mitra Perkasa vs. PT Winner Nusantara
Performance |
| Timeline |
| Protech Mitra Perkasa |
| PT Winner Nusantara |
Protech Mitra and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protech Mitra and PT Winner
The main advantage of trading using opposite Protech Mitra and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protech Mitra position performs unexpectedly, PT Winner 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 Winner will offset losses from the drop in PT Winner's long position.| Protech Mitra vs. Pelayaran Nelly Dwi | Protech Mitra vs. Trans Power Marine | Protech Mitra vs. Sidomulyo Selaras Tbk | Protech Mitra vs. Bali Towerindo Sentra |
| PT Winner vs. Weha Transportasi Indonesia | PT Winner vs. Protech Mitra Perkasa | PT Winner vs. Communication Cable Systems | PT Winner vs. Media Nusantara Citra |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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