Correlation Between PT Winner and Indointernet Tbk
Can any of the company-specific risk be diversified away by investing in both PT Winner and Indointernet 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 PT Winner and Indointernet Tbk 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 Indointernet Tbk PT, you can compare the effects of market volatilities on PT Winner and Indointernet 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 PT Winner with a short position of Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Winner and Indointernet Tbk.
Diversification Opportunities for PT Winner and Indointernet Tbk
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WINR and Indointernet is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Winner Nusantara and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet Tbk 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 Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of PT Winner i.e., PT Winner and Indointernet Tbk go up and down completely randomly.
Pair Corralation between PT Winner and Indointernet Tbk
Assuming the 90 days trading horizon PT Winner Nusantara is expected to generate 4.92 times more return on investment than Indointernet Tbk. However, PT Winner is 4.92 times more volatile than Indointernet Tbk PT. It trades about 0.1 of its potential returns per unit of risk. Indointernet Tbk PT is currently generating about -0.14 per unit of risk. If you would invest 1,300 in PT Winner Nusantara on October 9, 2024 and sell it today you would earn a total of 100.00 from holding PT Winner Nusantara or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Winner Nusantara vs. Indointernet Tbk PT
Performance |
| Timeline |
| PT Winner Nusantara |
| Indointernet Tbk |
PT Winner and Indointernet Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Winner and Indointernet Tbk
The main advantage of trading using opposite PT Winner and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Winner position performs unexpectedly, Indointernet 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk's long position.| PT Winner vs. Jaya Sukses Makmur | PT Winner vs. Hanson International Tbk | PT Winner vs. Rimo International Lestari | PT Winner vs. Pollux Investasi Internasional |
| Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Indosterling Technomedia Tbk | Indointernet Tbk vs. PT Data Sinergitama | Indointernet Tbk vs. Solusi Sinergi Digital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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