Correlation Between PT Wintermar and Global Ship
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on PT Wintermar and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Global Ship.
Diversification Opportunities for PT Wintermar and Global Ship
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between W6O and Global is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of PT Wintermar i.e., PT Wintermar and Global Ship go up and down completely randomly.
Pair Corralation between PT Wintermar and Global Ship
Assuming the 90 days horizon PT Wintermar Offshore is expected to generate 5.87 times more return on investment than Global Ship. However, PT Wintermar is 5.87 times more volatile than Global Ship Lease. It trades about 0.06 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.04 per unit of risk. If you would invest 1.75 in PT Wintermar Offshore on November 4, 2024 and sell it today you would earn a total of 0.35 from holding PT Wintermar Offshore or generate 20.0% 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. Global Ship Lease
Performance |
| Timeline |
| PT Wintermar Offshore |
| Global Ship Lease |
PT Wintermar and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and Global Ship
The main advantage of trading using opposite PT Wintermar and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| PT Wintermar vs. AP Mller | PT Wintermar vs. AP Mller | PT Wintermar vs. HAPAG LLOYD UNSPADR 12 | PT Wintermar vs. ZIM Integrated Shipping |
| Global Ship vs. Singapore Telecommunications Limited | Global Ship vs. CRISPR Therapeutics AG | Global Ship vs. Cogent Communications Holdings | Global Ship vs. HEMISPHERE EGY |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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