Correlation Between PT Wintermar and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and Tianjin Capital 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 Tianjin Capital 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 Tianjin Capital Environmental, you can compare the effects of market volatilities on PT Wintermar and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Tianjin Capital.
Diversification Opportunities for PT Wintermar and Tianjin Capital
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between W6O and Tianjin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of PT Wintermar i.e., PT Wintermar and Tianjin Capital go up and down completely randomly.
Pair Corralation between PT Wintermar and Tianjin Capital
Assuming the 90 days horizon PT Wintermar Offshore is expected to under-perform the Tianjin Capital. In addition to that, PT Wintermar is 2.23 times more volatile than Tianjin Capital Environmental. It trades about -0.21 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.1 per unit of volatility. If you would invest 38.00 in Tianjin Capital Environmental on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Tianjin Capital Environmental or generate 2.63% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| PT Wintermar Offshore |
| Tianjin Capital Envi |
PT Wintermar and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and Tianjin Capital
The main advantage of trading using opposite PT Wintermar and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital'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 |
| Tianjin Capital vs. SILVER BULLET DATA | Tianjin Capital vs. Columbia Sportswear | Tianjin Capital vs. GEELY AUTOMOBILE | Tianjin Capital vs. SOEDER SPORTFISKE AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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