Correlation Between Wintermar Offshore and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Wintermar Offshore and Humpuss Intermoda 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Wintermar Offshore and Humpuss Intermoda 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 Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintermar Offshore and Humpuss Intermoda.
Diversification Opportunities for Wintermar Offshore and Humpuss Intermoda
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wintermar and Humpuss is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Wintermar Offshore Marine and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda 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 Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Wintermar Offshore i.e., Wintermar Offshore and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Wintermar Offshore and Humpuss Intermoda
Assuming the 90 days trading horizon Wintermar Offshore is expected to generate 3.55 times less return on investment than Humpuss Intermoda. But when comparing it to its historical volatility, Wintermar Offshore Marine is 1.08 times less risky than Humpuss Intermoda. It trades about 0.02 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 37,200 in Humpuss Intermoda Transportasi on September 3, 2024 and sell it today you would earn a total of 5,400 from holding Humpuss Intermoda Transportasi or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintermar Offshore Marine vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Wintermar Offshore Marine |
| Humpuss Intermoda |
Wintermar Offshore and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintermar Offshore and Humpuss Intermoda
The main advantage of trading using opposite Wintermar Offshore and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintermar Offshore position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda'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 |
| Humpuss Intermoda vs. Weha Transportasi Indonesia | Humpuss Intermoda vs. Mitra Pinasthika Mustika | Humpuss Intermoda vs. Jakarta Int Hotels | Humpuss Intermoda vs. Asuransi Harta Aman |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |