Correlation Between Wulandari Bangun and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Wulandari Bangun and PP Presisi 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 Wulandari Bangun and PP Presisi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wulandari Bangun Laksana and PP Presisi Tbk, you can compare the effects of market volatilities on Wulandari Bangun and PP Presisi 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 Wulandari Bangun with a short position of PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wulandari Bangun and PP Presisi.
Diversification Opportunities for Wulandari Bangun and PP Presisi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wulandari and PPRE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wulandari Bangun Laksana and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi Tbk and Wulandari Bangun 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 Wulandari Bangun Laksana are associated (or correlated) with PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Wulandari Bangun i.e., Wulandari Bangun and PP Presisi go up and down completely randomly.
Pair Corralation between Wulandari Bangun and PP Presisi
If you would invest 5,000 in Wulandari Bangun Laksana on December 2, 2024 and sell it today you would earn a total of 0.00 from holding Wulandari Bangun Laksana or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wulandari Bangun Laksana vs. PP Presisi Tbk
Performance |
Timeline |
Wulandari Bangun Laksana |
PP Presisi Tbk |
Wulandari Bangun and PP Presisi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wulandari Bangun and PP Presisi
The main advantage of trading using opposite Wulandari Bangun and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wulandari Bangun position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi's long position.Wulandari Bangun vs. Humpuss Intermoda Transportasi | Wulandari Bangun vs. Tiphone Mobile Indonesia | Wulandari Bangun vs. Lotte Chemical Titan | Wulandari Bangun vs. Weha Transportasi Indonesia |
PP Presisi vs. Wijaya Karya Bangunan | PP Presisi vs. PP Properti Tbk | PP Presisi vs. Wijaya Karya Beton | PP Presisi vs. Soechi Lines 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |