Correlation Between Wahana Pronatural and Tira Austenite
Can any of the company-specific risk be diversified away by investing in both Wahana Pronatural and Tira Austenite 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 Wahana Pronatural and Tira Austenite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Pronatural and Tira Austenite Tbk, you can compare the effects of market volatilities on Wahana Pronatural and Tira Austenite 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 Wahana Pronatural with a short position of Tira Austenite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Pronatural and Tira Austenite.
Diversification Opportunities for Wahana Pronatural and Tira Austenite
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wahana and Tira is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Pronatural and Tira Austenite Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tira Austenite Tbk and Wahana Pronatural 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 Wahana Pronatural are associated (or correlated) with Tira Austenite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tira Austenite Tbk has no effect on the direction of Wahana Pronatural i.e., Wahana Pronatural and Tira Austenite go up and down completely randomly.
Pair Corralation between Wahana Pronatural and Tira Austenite
Assuming the 90 days trading horizon Wahana Pronatural is expected to under-perform the Tira Austenite. In addition to that, Wahana Pronatural is 1.35 times more volatile than Tira Austenite Tbk. It trades about -0.12 of its total potential returns per unit of risk. Tira Austenite Tbk is currently generating about 0.07 per unit of volatility. If you would invest 48,800 in Tira Austenite Tbk on September 4, 2024 and sell it today you would earn a total of 1,200 from holding Tira Austenite Tbk or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wahana Pronatural vs. Tira Austenite Tbk
Performance |
| Timeline |
| Wahana Pronatural |
| Tira Austenite Tbk |
Wahana Pronatural and Tira Austenite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Pronatural and Tira Austenite
The main advantage of trading using opposite Wahana Pronatural and Tira Austenite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Pronatural position performs unexpectedly, Tira Austenite 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 Tira Austenite will offset losses from the drop in Tira Austenite's long position.| Wahana Pronatural vs. Astra International Tbk | Wahana Pronatural vs. Unilever Indonesia Tbk | Wahana Pronatural vs. Telkom Indonesia Tbk | Wahana Pronatural vs. Bank Mandiri Persero |
| Tira Austenite vs. Tigaraksa Satria Tbk | Tira Austenite vs. Wicaksana Overseas International | Tira Austenite vs. Wahana Pronatural | Tira Austenite vs. Millennium Pharmacon International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |