Correlation Between Weha Transportasi and Acset Indonusa
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi and Acset Indonusa 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 Weha Transportasi and Acset Indonusa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weha Transportasi Indonesia and Acset Indonusa Tbk, you can compare the effects of market volatilities on Weha Transportasi and Acset Indonusa 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 Weha Transportasi with a short position of Acset Indonusa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Acset Indonusa.
Diversification Opportunities for Weha Transportasi and Acset Indonusa
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weha and Acset is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia and Acset Indonusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acset Indonusa Tbk and Weha Transportasi 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 Weha Transportasi Indonesia are associated (or correlated) with Acset Indonusa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acset Indonusa Tbk has no effect on the direction of Weha Transportasi i.e., Weha Transportasi and Acset Indonusa go up and down completely randomly.
Pair Corralation between Weha Transportasi and Acset Indonusa
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to generate 0.7 times more return on investment than Acset Indonusa. However, Weha Transportasi Indonesia is 1.44 times less risky than Acset Indonusa. It trades about 0.02 of its potential returns per unit of risk. Acset Indonusa Tbk is currently generating about 0.0 per unit of risk. If you would invest 11,546 in Weha Transportasi Indonesia on August 31, 2024 and sell it today you would earn a total of 754.00 from holding Weha Transportasi Indonesia or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Acset Indonusa Tbk
Performance |
| Timeline |
| Weha Transportasi |
| Acset Indonusa Tbk |
Weha Transportasi and Acset Indonusa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Acset Indonusa
The main advantage of trading using opposite Weha Transportasi and Acset Indonusa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi position performs unexpectedly, Acset Indonusa 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 Acset Indonusa will offset losses from the drop in Acset Indonusa's long position.| Weha Transportasi vs. Matahari Department Store | Weha Transportasi vs. Multi Medika Internasional | Weha Transportasi vs. Visi Media Asia | Weha Transportasi vs. Bayan Resources Tbk |
| Acset Indonusa vs. Matahari Department Store | Acset Indonusa vs. Multi Medika Internasional | Acset Indonusa vs. Visi Media Asia | Acset Indonusa vs. Bayan Resources Tbk |
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.
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