Correlation Between Weha Transportasi and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Weha Transportasi and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Citatah Tbk.
Diversification Opportunities for Weha Transportasi and Citatah Tbk
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weha and Citatah is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Weha Transportasi i.e., Weha Transportasi and Citatah Tbk go up and down completely randomly.
Pair Corralation between Weha Transportasi and Citatah Tbk
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to generate 0.88 times more return on investment than Citatah Tbk. However, Weha Transportasi Indonesia is 1.14 times less risky than Citatah Tbk. It trades about 0.02 of its potential returns per unit of risk. Citatah Tbk is currently generating about -0.03 per unit of risk. If you would invest 10,411 in Weha Transportasi Indonesia on September 13, 2024 and sell it today you would earn a total of 1,489 from holding Weha Transportasi Indonesia or generate 14.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Citatah Tbk
Performance |
| Timeline |
| Weha Transportasi |
| Citatah Tbk |
Weha Transportasi and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Citatah Tbk
The main advantage of trading using opposite Weha Transportasi and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk's long position.| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia Tbk |
| Citatah Tbk vs. Siloam International Hospitals | Citatah Tbk vs. Weha Transportasi Indonesia | Citatah Tbk vs. Diamond Food Indonesia | Citatah Tbk vs. Metro Healthcare Indonesia |
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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