Correlation Between Pt Pakuan and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan 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 Pt Pakuan and Wijaya Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Wijaya Karya Bangunan, you can compare the effects of market volatilities on Pt Pakuan 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 Pt Pakuan with a short position of Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Wijaya Karya.
Diversification Opportunities for Pt Pakuan and Wijaya Karya
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UANG and Wijaya is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Wijaya Karya Bangunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Bangunan and Pt Pakuan 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 Pt Pakuan Tbk 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 Bangunan has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Wijaya Karya go up and down completely randomly.
Pair Corralation between Pt Pakuan and Wijaya Karya
If you would invest 73,500 in Pt Pakuan Tbk on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pakuan Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pakuan Tbk vs. Wijaya Karya Bangunan
Performance |
| Timeline |
| Pt Pakuan Tbk |
| Wijaya Karya Bangunan |
Pt Pakuan and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pakuan and Wijaya Karya
The main advantage of trading using opposite Pt Pakuan and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan 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.| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
| Wijaya Karya vs. Wijaya Karya Beton | Wijaya Karya vs. Waskita Beton Precast | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Puradelta Lestari PT |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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