Correlation Between Wijaya Karya and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Wijaya Karya and Pt Pakuan 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 Wijaya Karya and Pt Pakuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wijaya Karya Bangunan and Pt Pakuan Tbk, you can compare the effects of market volatilities on Wijaya Karya and Pt Pakuan 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 Wijaya Karya with a short position of Pt Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wijaya Karya and Pt Pakuan.
Diversification Opportunities for Wijaya Karya and Pt Pakuan
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wijaya and UANG is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wijaya Karya Bangunan and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan Tbk and Wijaya Karya 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 Wijaya Karya Bangunan are associated (or correlated) with Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Wijaya Karya i.e., Wijaya Karya and Pt Pakuan go up and down completely randomly.
Pair Corralation between Wijaya Karya and Pt Pakuan
If you would invest 73,500 in Pt Pakuan Tbk on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pakuan Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wijaya Karya Bangunan vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Wijaya Karya Bangunan |
| Pt Pakuan Tbk |
Wijaya Karya and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wijaya Karya and Pt Pakuan
The main advantage of trading using opposite Wijaya Karya and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wijaya Karya position performs unexpectedly, Pt Pakuan 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 Pt Pakuan will offset losses from the drop in Pt Pakuan's long position.| Wijaya Karya vs. Wijaya Karya Beton | Wijaya Karya vs. Waskita Beton Precast | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Puradelta Lestari PT |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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