Correlation Between Delta Dunia and Wintermar Offshore

Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Wintermar Offshore 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 Delta Dunia and Wintermar Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Delta Dunia Makmur and Wintermar Offshore Marine, you can compare the effects of market volatilities on Delta Dunia and Wintermar Offshore 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 Delta Dunia with a short position of Wintermar Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Wintermar Offshore.

Diversification Opportunities for Delta Dunia and Wintermar Offshore

-0.17

Correlation Coefficient

Delta Dunia  Wintermar Offshore

Good diversification

The 3 months correlation between Delta and Wintermar is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Wintermar Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintermar Offshore Marine and Delta Dunia 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 Delta Dunia Makmur are associated (or correlated) with Wintermar Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintermar Offshore Marine has no effect on the direction of Delta Dunia i.e., Delta Dunia and Wintermar Offshore go up and down completely randomly.

Pair Corralation between Delta Dunia and Wintermar Offshore

Assuming the 90 days trading horizon Delta Dunia Makmur is expected to under-perform the Wintermar Offshore. In addition to that, Delta Dunia is 1.41 times more volatile than Wintermar Offshore Marine. It trades about -0.08 of its total potential returns per unit of risk. Wintermar Offshore Marine is currently generating about -0.02 per unit of volatility. If you would invest  46,000  in Wintermar Offshore Marine on September 16, 2024 and sell it today you would lose (600.00) from holding Wintermar Offshore Marine or give up 1.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Delta Dunia Makmur  vs.  Wintermar Offshore Marine

Delta Dunia Makmur

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delta Dunia Makmur has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Wintermar Offshore Marine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wintermar Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Wintermar Offshore is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Delta Dunia and Wintermar Offshore

The main advantage of trading using opposite Delta Dunia and Wintermar Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Wintermar Offshore 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 Wintermar Offshore will offset losses from the drop in Wintermar Offshore's long position.

The idea behind Delta Dunia Makmur and Wintermar Offshore Marine 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.