Correlation Between Akr Corporindo and Wahana Pronatural

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Wahana Pronatural 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 Akr Corporindo and Wahana Pronatural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Wahana Pronatural, you can compare the effects of market volatilities on Akr Corporindo and Wahana Pronatural 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 Akr Corporindo with a short position of Wahana Pronatural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Wahana Pronatural.

Diversification Opportunities for Akr Corporindo and Wahana Pronatural

AkrWahanaDiversified AwayAkrWahanaDiversified Away100%
-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Akr and Wahana is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Wahana Pronatural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Pronatural and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Wahana Pronatural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Pronatural has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Wahana Pronatural go up and down completely randomly.

Pair Corralation between Akr Corporindo and Wahana Pronatural

Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the Wahana Pronatural. But the stock apears to be less risky and, when comparing its historical volatility, Akr Corporindo Tbk is 2.51 times less risky than Wahana Pronatural. The stock trades about 0.0 of its potential returns per unit of risk. The Wahana Pronatural is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  9,400  in Wahana Pronatural on November 24, 2024 and sell it today you would earn a total of  3,800  from holding Wahana Pronatural or generate 40.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Akr Corporindo Tbk  vs.  Wahana Pronatural

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0204060
JavaScript chart by amCharts 3.21.15AKRA WAPO
       Timeline  
Akr Corporindo Tbk 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Akr Corporindo Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Akr Corporindo is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,0501,1001,1501,2001,2501,3001,350
Wahana Pronatural 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Wahana Pronatural are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Wahana Pronatural disclosed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb100120140160180

Akr Corporindo and Wahana Pronatural Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.33-3.24-2.16-1.070.01.052.133.214.35.38 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15AKRA WAPO
       Returns  

Pair Trading with Akr Corporindo and Wahana Pronatural

The main advantage of trading using opposite Akr Corporindo and Wahana Pronatural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Wahana Pronatural 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 Wahana Pronatural will offset losses from the drop in Wahana Pronatural's long position.
The idea behind Akr Corporindo Tbk and Wahana Pronatural pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Stocks Directory
Find actively traded stocks across global markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital