Correlation Between Teladan Prima and Wahana Inti
Can any of the company-specific risk be diversified away by investing in both Teladan Prima and Wahana Inti 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 Teladan Prima and Wahana Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladan Prima Agro and Wahana Inti MakmurTbk, you can compare the effects of market volatilities on Teladan Prima and Wahana Inti 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 Teladan Prima with a short position of Wahana Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladan Prima and Wahana Inti.
Diversification Opportunities for Teladan Prima and Wahana Inti
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teladan and Wahana is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Teladan Prima Agro and Wahana Inti MakmurTbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Inti MakmurTbk and Teladan Prima 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 Teladan Prima Agro are associated (or correlated) with Wahana Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Inti MakmurTbk has no effect on the direction of Teladan Prima i.e., Teladan Prima and Wahana Inti go up and down completely randomly.
Pair Corralation between Teladan Prima and Wahana Inti
Assuming the 90 days trading horizon Teladan Prima Agro is expected to under-perform the Wahana Inti. But the stock apears to be less risky and, when comparing its historical volatility, Teladan Prima Agro is 2.52 times less risky than Wahana Inti. The stock trades about -0.28 of its potential returns per unit of risk. The Wahana Inti MakmurTbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8,600 in Wahana Inti MakmurTbk on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Wahana Inti MakmurTbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladan Prima Agro vs. Wahana Inti MakmurTbk
Performance |
| Timeline |
| Teladan Prima Agro |
| Wahana Inti MakmurTbk |
Teladan Prima and Wahana Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladan Prima and Wahana Inti
The main advantage of trading using opposite Teladan Prima and Wahana Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladan Prima position performs unexpectedly, Wahana Inti 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 Wahana Inti will offset losses from the drop in Wahana Inti's long position.| Teladan Prima vs. Dharma Satya Nusantara | Teladan Prima vs. Saratoga Investama Sedaya | Teladan Prima vs. Surya Esa Perkasa | Teladan Prima vs. Elang Mahkota Teknologi |
| Wahana Inti vs. Dharma Satya Nusantara | Wahana Inti vs. Saratoga Investama Sedaya | Wahana Inti vs. Surya Esa Perkasa | Wahana Inti vs. Elang Mahkota Teknologi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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