Correlation Between PT Wintermar and Ping An
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and Ping An 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 Ping An 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 Ping An Healthcare, you can compare the effects of market volatilities on PT Wintermar and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Ping An.
Diversification Opportunities for PT Wintermar and Ping An
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between W6O and Ping is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Healthcare has no effect on the direction of PT Wintermar i.e., PT Wintermar and Ping An go up and down completely randomly.
Pair Corralation between PT Wintermar and Ping An
If you would invest 2.50 in PT Wintermar Offshore on October 9, 2024 and sell it today you would earn a total of 0.00 from holding PT Wintermar Offshore or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. Ping An Healthcare
Performance |
| Timeline |
| PT Wintermar Offshore |
| Ping An Healthcare |
PT Wintermar and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and Ping An
The main advantage of trading using opposite PT Wintermar and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| PT Wintermar vs. NATIONAL HEALTHCARE | PT Wintermar vs. Perdoceo Education | PT Wintermar vs. CeoTronics AG | PT Wintermar vs. Sims Metal Management |
| Ping An vs. GigaMedia | Ping An vs. AIR PRODCHEMICALS | Ping An vs. CeoTronics AG | Ping An vs. INTER CARS SA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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