Correlation Between PT Winner and Dow Jones
Can any of the company-specific risk be diversified away by investing in both PT Winner and Dow Jones 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 PT Winner and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Winner Nusantara and Dow Jones Industrial, you can compare the effects of market volatilities on PT Winner and Dow Jones 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 PT Winner with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Winner and Dow Jones.
Diversification Opportunities for PT Winner and Dow Jones
Excellent diversification
The 3 months correlation between WINR and Dow is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PT Winner Nusantara and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and PT Winner 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 PT Winner Nusantara are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of PT Winner i.e., PT Winner and Dow Jones go up and down completely randomly.
Pair Corralation between PT Winner and Dow Jones
Assuming the 90 days trading horizon PT Winner Nusantara is expected to under-perform the Dow Jones. In addition to that, PT Winner is 5.39 times more volatile than Dow Jones Industrial. It trades about -0.1 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of volatility. If you would invest 4,179,460 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Winner Nusantara vs. Dow Jones Industrial
Performance |
| Timeline |
PT Winner and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PT Winner Nusantara
Pair trading matchups for PT Winner
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PT Winner and Dow Jones
The main advantage of trading using opposite PT Winner and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Winner position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| PT Winner vs. Garuda Metalindo Tbk | PT Winner vs. Weha Transportasi Indonesia | PT Winner vs. HK Metals Utama | PT Winner vs. Kedawung Setia Industrial |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |