Correlation Between PT Wintermar and United Insurance
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and United Insurance 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 Wintermar and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Wintermar Offshore and United Insurance Holdings, you can compare the effects of market volatilities on PT Wintermar and United Insurance 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 Wintermar with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and United Insurance.
Diversification Opportunities for PT Wintermar and United Insurance
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between W6O and United is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and United Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Insurance Holdings and PT Wintermar 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 Wintermar Offshore are associated (or correlated) with United Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Insurance Holdings has no effect on the direction of PT Wintermar i.e., PT Wintermar and United Insurance go up and down completely randomly.
Pair Corralation between PT Wintermar and United Insurance
Assuming the 90 days horizon PT Wintermar Offshore is expected to under-perform the United Insurance. In addition to that, PT Wintermar is 1.17 times more volatile than United Insurance Holdings. It trades about -0.24 of its total potential returns per unit of risk. United Insurance Holdings is currently generating about -0.17 per unit of volatility. If you would invest 1,258 in United Insurance Holdings on October 11, 2024 and sell it today you would lose (108.00) from holding United Insurance Holdings or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. United Insurance Holdings
Performance |
| Timeline |
| PT Wintermar Offshore |
| United Insurance Holdings |
PT Wintermar and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and United Insurance
The main advantage of trading using opposite PT Wintermar and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, United Insurance 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 United Insurance will offset losses from the drop in United Insurance's long position.| PT Wintermar vs. PPHE HOTEL GROUP | PT Wintermar vs. CarsalesCom | PT Wintermar vs. MHP Hotel AG | PT Wintermar vs. CITY OFFICE REIT |
| United Insurance vs. Austevoll Seafood ASA | United Insurance vs. RCI Hospitality Holdings | United Insurance vs. Wenzhou Kangning Hospital | United Insurance vs. COFCO Joycome Foods |
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 CEOs Directory module to screen CEOs from public companies around the world.
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