Correlation Between Wintermar Offshore and HK Metals
Can any of the company-specific risk be diversified away by investing in both Wintermar Offshore and HK Metals 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 HK Metals 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 HK Metals Utama, you can compare the effects of market volatilities on Wintermar Offshore and HK Metals 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 HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintermar Offshore and HK Metals.
Diversification Opportunities for Wintermar Offshore and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wintermar and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wintermar Offshore Marine and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama 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 HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of Wintermar Offshore i.e., Wintermar Offshore and HK Metals go up and down completely randomly.
Pair Corralation between Wintermar Offshore and HK Metals
If you would invest 28,142 in Wintermar Offshore Marine on August 31, 2024 and sell it today you would earn a total of 19,058 from holding Wintermar Offshore Marine or generate 67.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintermar Offshore Marine vs. HK Metals Utama
Performance |
| Timeline |
| Wintermar Offshore Marine |
| HK Metals Utama |
Wintermar Offshore and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintermar Offshore and HK Metals
The main advantage of trading using opposite Wintermar Offshore and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintermar Offshore position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| Wintermar Offshore vs. Mitrabahtera Segara Sejati | Wintermar Offshore vs. Weha Transportasi Indonesia | Wintermar Offshore vs. Rig Tenders Tbk | Wintermar Offshore vs. Rukun Raharja Tbk |
| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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