Correlation Between PT Wintermar and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both PT Wintermar and WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE, you can compare the effects of market volatilities on PT Wintermar and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and WT OFFSHORE.
Diversification Opportunities for PT Wintermar and WT OFFSHORE
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between W6O and UWV is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of PT Wintermar i.e., PT Wintermar and WT OFFSHORE go up and down completely randomly.
Pair Corralation between PT Wintermar and WT OFFSHORE
Assuming the 90 days horizon PT Wintermar Offshore is expected to generate 3.18 times more return on investment than WT OFFSHORE. However, PT Wintermar is 3.18 times more volatile than WT OFFSHORE. It trades about 0.05 of its potential returns per unit of risk. WT OFFSHORE is currently generating about -0.06 per unit of risk. If you would invest 2.00 in PT Wintermar Offshore on October 25, 2024 and sell it today you would earn a total of 0.25 from holding PT Wintermar Offshore or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. WT OFFSHORE
Performance |
| Timeline |
| PT Wintermar Offshore |
| WT OFFSHORE |
PT Wintermar and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and WT OFFSHORE
The main advantage of trading using opposite PT Wintermar and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| PT Wintermar vs. Magnachip Semiconductor | PT Wintermar vs. COMBA TELECOM SYST | PT Wintermar vs. Iridium Communications | PT Wintermar vs. TOREX SEMICONDUCTOR LTD |
| WT OFFSHORE vs. Micron Technology | WT OFFSHORE vs. AEON STORES | WT OFFSHORE vs. Charter Communications | WT OFFSHORE vs. Align Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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