Correlation Between Wintermar Offshore and Bukit Uluwatu
Can any of the company-specific risk be diversified away by investing in both Wintermar Offshore and Bukit Uluwatu 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 Bukit Uluwatu 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 Bukit Uluwatu Villa, you can compare the effects of market volatilities on Wintermar Offshore and Bukit Uluwatu 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 Bukit Uluwatu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintermar Offshore and Bukit Uluwatu.
Diversification Opportunities for Wintermar Offshore and Bukit Uluwatu
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wintermar and Bukit is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Wintermar Offshore Marine and Bukit Uluwatu Villa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Uluwatu Villa 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 Bukit Uluwatu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Uluwatu Villa has no effect on the direction of Wintermar Offshore i.e., Wintermar Offshore and Bukit Uluwatu go up and down completely randomly.
Pair Corralation between Wintermar Offshore and Bukit Uluwatu
Assuming the 90 days trading horizon Wintermar Offshore Marine is expected to generate 1.12 times more return on investment than Bukit Uluwatu. However, Wintermar Offshore is 1.12 times more volatile than Bukit Uluwatu Villa. It trades about 0.04 of its potential returns per unit of risk. Bukit Uluwatu Villa is currently generating about 0.01 per unit of risk. If you would invest 32,669 in Wintermar Offshore Marine on September 4, 2024 and sell it today you would earn a total of 12,931 from holding Wintermar Offshore Marine or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Wintermar Offshore Marine vs. Bukit Uluwatu Villa
Performance |
| Timeline |
| Wintermar Offshore Marine |
| Bukit Uluwatu Villa |
Wintermar Offshore and Bukit Uluwatu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintermar Offshore and Bukit Uluwatu
The main advantage of trading using opposite Wintermar Offshore and Bukit Uluwatu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintermar Offshore position performs unexpectedly, Bukit Uluwatu 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 Bukit Uluwatu will offset losses from the drop in Bukit Uluwatu's long position.| Wintermar Offshore vs. Weha Transportasi Indonesia | Wintermar Offshore vs. Mitra Pinasthika Mustika | Wintermar Offshore vs. Jakarta Int Hotels | Wintermar Offshore vs. Asuransi Harta Aman |
| Bukit Uluwatu vs. Galva Technologies Tbk | Bukit Uluwatu vs. Chandra Asri Petrochemical | Bukit Uluwatu vs. Metro Healthcare Indonesia | Bukit Uluwatu vs. Grand Kartech 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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