Correlation Between Wahana Ottomitra and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Wahana Ottomitra and Lenox Pasifik 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 Wahana Ottomitra and Lenox Pasifik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Ottomitra Multiartha and Lenox Pasifik Investama, you can compare the effects of market volatilities on Wahana Ottomitra and Lenox Pasifik 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 Wahana Ottomitra with a short position of Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Ottomitra and Lenox Pasifik.
Diversification Opportunities for Wahana Ottomitra and Lenox Pasifik
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wahana and Lenox is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Ottomitra Multiartha and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama and Wahana Ottomitra 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 Wahana Ottomitra Multiartha are associated (or correlated) with Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Wahana Ottomitra i.e., Wahana Ottomitra and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Wahana Ottomitra and Lenox Pasifik
Assuming the 90 days trading horizon Wahana Ottomitra Multiartha is expected to generate 0.57 times more return on investment than Lenox Pasifik. However, Wahana Ottomitra Multiartha is 1.76 times less risky than Lenox Pasifik. It trades about 0.06 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about 0.0 per unit of risk. If you would invest 24,208 in Wahana Ottomitra Multiartha on August 28, 2024 and sell it today you would earn a total of 11,992 from holding Wahana Ottomitra Multiartha or generate 49.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Wahana Ottomitra Multiartha vs. Lenox Pasifik Investama
Performance |
Timeline |
Wahana Ottomitra Mul |
Lenox Pasifik Investama |
Wahana Ottomitra and Lenox Pasifik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wahana Ottomitra and Lenox Pasifik
The main advantage of trading using opposite Wahana Ottomitra and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Ottomitra position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest Tbk |
Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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