Correlation Between Wintermar Offshore and Dunia Virtual
Can any of the company-specific risk be diversified away by investing in both Wintermar Offshore and Dunia Virtual 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 Wintermar Offshore and Dunia Virtual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintermar Offshore Marine and Dunia Virtual Online, you can compare the effects of market volatilities on Wintermar Offshore and Dunia Virtual 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 Wintermar Offshore with a short position of Dunia Virtual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintermar Offshore and Dunia Virtual.
Diversification Opportunities for Wintermar Offshore and Dunia Virtual
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintermar and Dunia is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wintermar Offshore Marine and Dunia Virtual Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunia Virtual Online and Wintermar Offshore 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 Wintermar Offshore Marine are associated (or correlated) with Dunia Virtual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunia Virtual Online has no effect on the direction of Wintermar Offshore i.e., Wintermar Offshore and Dunia Virtual go up and down completely randomly.
Pair Corralation between Wintermar Offshore and Dunia Virtual
Assuming the 90 days trading horizon Wintermar Offshore Marine is expected to under-perform the Dunia Virtual. In addition to that, Wintermar Offshore is 1.17 times more volatile than Dunia Virtual Online. It trades about -0.01 of its total potential returns per unit of risk. Dunia Virtual Online is currently generating about 0.03 per unit of volatility. If you would invest 20,400 in Dunia Virtual Online on November 3, 2024 and sell it today you would earn a total of 200.00 from holding Dunia Virtual Online or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintermar Offshore Marine vs. Dunia Virtual Online
Performance |
| Timeline |
| Wintermar Offshore Marine |
| Dunia Virtual Online |
Wintermar Offshore and Dunia Virtual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintermar Offshore and Dunia Virtual
The main advantage of trading using opposite Wintermar Offshore and Dunia Virtual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintermar Offshore position performs unexpectedly, Dunia Virtual 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 Dunia Virtual will offset losses from the drop in Dunia Virtual's long position.| Wintermar Offshore vs. Mitrabahtera Segara Sejati | Wintermar Offshore vs. PT Temas Tbk | Wintermar Offshore vs. Weha Transportasi Indonesia | Wintermar Offshore vs. Rig Tenders Tbk |
| Dunia Virtual vs. Galva Technologies Tbk | Dunia Virtual vs. Digital Mediatama Maxima | Dunia Virtual vs. Chandra Asri Petrochemical | Dunia Virtual vs. Indosterling Technomedia 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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