Correlation Between Wintermar Offshore and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Wintermar Offshore and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Wintermar Offshore and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintermar Offshore and Hotel Sahid.
Diversification Opportunities for Wintermar Offshore and Hotel Sahid
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wintermar and Hotel is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Wintermar Offshore Marine and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Wintermar Offshore i.e., Wintermar Offshore and Hotel Sahid go up and down completely randomly.
Pair Corralation between Wintermar Offshore and Hotel Sahid
Assuming the 90 days trading horizon Wintermar Offshore Marine is expected to generate 0.83 times more return on investment than Hotel Sahid. However, Wintermar Offshore Marine is 1.2 times less risky than Hotel Sahid. It trades about 0.07 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.01 per unit of risk. If you would invest 44,674 in Wintermar Offshore Marine on August 28, 2024 and sell it today you would earn a total of 3,126 from holding Wintermar Offshore Marine or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintermar Offshore Marine vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Wintermar Offshore Marine |
| Hotel Sahid Jaya |
Wintermar Offshore and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintermar Offshore and Hotel Sahid
The main advantage of trading using opposite Wintermar Offshore and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintermar Offshore position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid'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 |
| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |