Correlation Between Hotel Sahid and Wintermar Offshore
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Wintermar Offshore 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 Hotel Sahid and Wintermar Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Wintermar Offshore Marine, you can compare the effects of market volatilities on Hotel Sahid and Wintermar Offshore 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 Hotel Sahid with a short position of Wintermar Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Wintermar Offshore.
Diversification Opportunities for Hotel Sahid and Wintermar Offshore
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hotel and Wintermar is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Wintermar Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintermar Offshore Marine and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Wintermar Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintermar Offshore Marine has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Wintermar Offshore go up and down completely randomly.
Pair Corralation between Hotel Sahid and Wintermar Offshore
If you would invest 44,674 in Wintermar Offshore Marine on August 28, 2024 and sell it today you would earn a total of 3,126 from holding Wintermar Offshore Marine or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Wintermar Offshore Marine
Performance |
| Timeline |
| Hotel Sahid Jaya |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Wintermar Offshore Marine |
Hotel Sahid and Wintermar Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Wintermar Offshore
The main advantage of trading using opposite Hotel Sahid and Wintermar Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Wintermar Offshore 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 Wintermar Offshore will offset losses from the drop in Wintermar Offshore's long position.| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
| Wintermar Offshore vs. Mitrabahtera Segara Sejati | Wintermar Offshore vs. PT Temas Tbk | Wintermar Offshore vs. Weha Transportasi Indonesia | Wintermar Offshore vs. Rig Tenders 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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