Correlation Between PT Wintermar and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on PT Wintermar and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Grand Canyon.
Diversification Opportunities for PT Wintermar and Grand Canyon
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between W6O and Grand is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of PT Wintermar i.e., PT Wintermar and Grand Canyon go up and down completely randomly.
Pair Corralation between PT Wintermar and Grand Canyon
Assuming the 90 days horizon PT Wintermar Offshore is expected to under-perform the Grand Canyon. In addition to that, PT Wintermar is 1.55 times more volatile than Grand Canyon Education. It trades about -0.05 of its total potential returns per unit of risk. Grand Canyon Education is currently generating about 0.2 per unit of volatility. If you would invest 12,300 in Grand Canyon Education on October 26, 2024 and sell it today you would earn a total of 4,000 from holding Grand Canyon Education or generate 32.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. Grand Canyon Education
Performance |
| Timeline |
| PT Wintermar Offshore |
| Grand Canyon Education |
PT Wintermar and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and Grand Canyon
The main advantage of trading using opposite PT Wintermar and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| PT Wintermar vs. CONTAGIOUS GAMING INC | PT Wintermar vs. Corsair Gaming | PT Wintermar vs. Pure Storage | PT Wintermar vs. Cass Information Systems |
| Grand Canyon vs. De Grey Mining | Grand Canyon vs. CHAMPION IRON | Grand Canyon vs. Stag Industrial | Grand Canyon vs. SIEM OFFSHORE NEW |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets |