Correlation Between Weha Transportasi and Delta Dunia
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi and Delta Dunia 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 Delta Dunia 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 Delta Dunia Makmur, you can compare the effects of market volatilities on Weha Transportasi and Delta Dunia 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 Delta Dunia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Delta Dunia.
Diversification Opportunities for Weha Transportasi and Delta Dunia
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weha and Delta is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia and Delta Dunia Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Dunia Makmur 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 Delta Dunia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Dunia Makmur has no effect on the direction of Weha Transportasi i.e., Weha Transportasi and Delta Dunia go up and down completely randomly.
Pair Corralation between Weha Transportasi and Delta Dunia
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to under-perform the Delta Dunia. But the stock apears to be less risky and, when comparing its historical volatility, Weha Transportasi Indonesia is 1.99 times less risky than Delta Dunia. The stock trades about -0.25 of its potential returns per unit of risk. The Delta Dunia Makmur is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 67,000 in Delta Dunia Makmur on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Delta Dunia Makmur or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Delta Dunia Makmur
Performance |
| Timeline |
| Weha Transportasi |
| Delta Dunia Makmur |
Weha Transportasi and Delta Dunia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Delta Dunia
The main advantage of trading using opposite Weha Transportasi and Delta Dunia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi position performs unexpectedly, Delta Dunia 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 Delta Dunia will offset losses from the drop in Delta Dunia'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 |
| Delta Dunia vs. Mitrabahtera Segara Sejati | Delta Dunia vs. Weha Transportasi Indonesia | Delta Dunia vs. Rig Tenders 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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