Correlation Between PT Winner and First Media
Can any of the company-specific risk be diversified away by investing in both PT Winner and First Media 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 First Media 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 First Media Tbk, you can compare the effects of market volatilities on PT Winner and First Media 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 First Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Winner and First Media.
Diversification Opportunities for PT Winner and First Media
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WINR and First is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Winner Nusantara and First Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Media 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 First Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Media Tbk has no effect on the direction of PT Winner i.e., PT Winner and First Media go up and down completely randomly.
Pair Corralation between PT Winner and First Media
Assuming the 90 days trading horizon PT Winner Nusantara is expected to under-perform the First Media. In addition to that, PT Winner is 1.08 times more volatile than First Media Tbk. It trades about -0.06 of its total potential returns per unit of risk. First Media Tbk is currently generating about 0.02 per unit of volatility. If you would invest 9,700 in First Media Tbk on September 3, 2024 and sell it today you would earn a total of 0.00 from holding First Media Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
PT Winner Nusantara vs. First Media Tbk
Performance |
| Timeline |
| PT Winner Nusantara |
| First Media Tbk |
PT Winner and First Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Winner and First Media
The main advantage of trading using opposite PT Winner and First Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Winner position performs unexpectedly, First Media 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 First Media will offset losses from the drop in First Media's 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 |
| First Media vs. Indosat Tbk | First Media vs. Energi Mega Persada | First Media vs. Mitra Pinasthika Mustika | First Media vs. Jakarta Int Hotels |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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