Correlation Between PT Wintermar and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on PT Wintermar and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and CompuGroup Medical.
Diversification Opportunities for PT Wintermar and CompuGroup Medical
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between W6O and CompuGroup is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of PT Wintermar i.e., PT Wintermar and CompuGroup Medical go up and down completely randomly.
Pair Corralation between PT Wintermar and CompuGroup Medical
Assuming the 90 days horizon PT Wintermar Offshore is expected to generate 3.31 times more return on investment than CompuGroup Medical. However, PT Wintermar is 3.31 times more volatile than CompuGroup Medical SE. It trades about 0.05 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.03 per unit of risk. If you would invest 1.25 in PT Wintermar Offshore on October 14, 2024 and sell it today you would earn a total of 0.75 from holding PT Wintermar Offshore or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. CompuGroup Medical SE
Performance |
| Timeline |
| PT Wintermar Offshore |
| CompuGroup Medical |
PT Wintermar and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and CompuGroup Medical
The main advantage of trading using opposite PT Wintermar and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| PT Wintermar vs. Zijin Mining Group | PT Wintermar vs. INTERSHOP Communications Aktiengesellschaft | PT Wintermar vs. GREENX METALS LTD | PT Wintermar vs. MCEWEN MINING INC |
| CompuGroup Medical vs. PT Wintermar Offshore | CompuGroup Medical vs. ELECTRONIC ARTS | CompuGroup Medical vs. Renesas Electronics | CompuGroup Medical vs. Nanjing Panda Electronics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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