Correlation Between Pollux Investasi and PT Winner
Can any of the company-specific risk be diversified away by investing in both Pollux Investasi 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 Pollux Investasi and PT Winner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Investasi Internasional and PT Winner Nusantara, you can compare the effects of market volatilities on Pollux Investasi 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 Pollux Investasi with a short position of PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and PT Winner.
Diversification Opportunities for Pollux Investasi and PT Winner
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pollux and WINR is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional 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 Pollux Investasi 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 Pollux Investasi Internasional 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 Pollux Investasi i.e., Pollux Investasi and PT Winner go up and down completely randomly.
Pair Corralation between Pollux Investasi and PT Winner
Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to generate 0.73 times more return on investment than PT Winner. However, Pollux Investasi Internasional is 1.37 times less risky than PT Winner. It trades about 0.01 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about -0.04 per unit of risk. If you would invest 79,000 in Pollux Investasi Internasional on October 25, 2024 and sell it today you would lose (2,000) from holding Pollux Investasi Internasional or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pollux Investasi Internasional vs. PT Winner Nusantara
Performance |
| Timeline |
| Pollux Investasi Int |
| PT Winner Nusantara |
Pollux Investasi and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Investasi and PT Winner
The main advantage of trading using opposite Pollux Investasi and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Investasi 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.| Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
| PT Winner vs. PT Hatten Bali | PT Winner vs. Metrodata Electronics Tbk | PT Winner vs. Panin Financial Tbk | PT Winner vs. Tera Data Indonusa |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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