Correlation Between Weha Transportasi and Super Energy
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi and Super Energy 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 Super Energy 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 Super Energy Tbk, you can compare the effects of market volatilities on Weha Transportasi and Super Energy 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 Super Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Super Energy.
Diversification Opportunities for Weha Transportasi and Super Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weha and Super is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia and Super Energy Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy 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 Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy Tbk has no effect on the direction of Weha Transportasi i.e., Weha Transportasi and Super Energy go up and down completely randomly.
Pair Corralation between Weha Transportasi and Super Energy
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to under-perform the Super Energy. But the stock apears to be less risky and, when comparing its historical volatility, Weha Transportasi Indonesia is 2.55 times less risky than Super Energy. The stock trades about -0.21 of its potential returns per unit of risk. The Super Energy Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 231,000 in Super Energy Tbk on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Super Energy Tbk or generate 0.0% 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. Super Energy Tbk
Performance |
| Timeline |
| Weha Transportasi |
| Super Energy Tbk |
Weha Transportasi and Super Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Super Energy
The main advantage of trading using opposite Weha Transportasi and Super Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi position performs unexpectedly, Super Energy 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 Super Energy will offset losses from the drop in Super Energy's long position.| Weha Transportasi vs. Intanwijaya Internasional Tbk | Weha Transportasi vs. Champion Pacific Indonesia | Weha Transportasi vs. Mitra Pinasthika Mustika | Weha Transportasi vs. Jakarta Int Hotels |
| Super Energy vs. Transcoal Pacific Tbk | Super Energy vs. Sillo Maritime Perdana | Super Energy vs. Pollux Properti Indonesia | Super Energy vs. Mahkota Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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