Correlation Between Wir Asia and PT Cilacap
Can any of the company-specific risk be diversified away by investing in both Wir Asia and PT Cilacap 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 Wir Asia and PT Cilacap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wir Asia Tbk and PT Cilacap Samudera, you can compare the effects of market volatilities on Wir Asia and PT Cilacap 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 Wir Asia with a short position of PT Cilacap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wir Asia and PT Cilacap.
Diversification Opportunities for Wir Asia and PT Cilacap
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wir and ASHA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Wir Asia Tbk and PT Cilacap Samudera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cilacap Samudera and Wir Asia 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 Wir Asia Tbk are associated (or correlated) with PT Cilacap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cilacap Samudera has no effect on the direction of Wir Asia i.e., Wir Asia and PT Cilacap go up and down completely randomly.
Pair Corralation between Wir Asia and PT Cilacap
Assuming the 90 days trading horizon Wir Asia Tbk is expected to under-perform the PT Cilacap. But the stock apears to be less risky and, when comparing its historical volatility, Wir Asia Tbk is 1.79 times less risky than PT Cilacap. The stock trades about -0.43 of its potential returns per unit of risk. The PT Cilacap Samudera is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,400 in PT Cilacap Samudera on September 1, 2024 and sell it today you would lose (200.00) from holding PT Cilacap Samudera or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wir Asia Tbk vs. PT Cilacap Samudera
Performance |
| Timeline |
| Wir Asia Tbk |
| PT Cilacap Samudera |
Wir Asia and PT Cilacap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wir Asia and PT Cilacap
The main advantage of trading using opposite Wir Asia and PT Cilacap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wir Asia position performs unexpectedly, PT Cilacap 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 PT Cilacap will offset losses from the drop in PT Cilacap's long position.| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
| PT Cilacap vs. PT Dewi Shri | PT Cilacap vs. Adaro Minerals Indonesia | PT Cilacap vs. Autopedia Sukses Lestari | PT Cilacap vs. Wir Asia 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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