Correlation Between Rig Tenders and Wicaksana Overseas
Can any of the company-specific risk be diversified away by investing in both Rig Tenders and Wicaksana Overseas 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 Rig Tenders and Wicaksana Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rig Tenders Tbk and Wicaksana Overseas International, you can compare the effects of market volatilities on Rig Tenders and Wicaksana Overseas 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 Rig Tenders with a short position of Wicaksana Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rig Tenders and Wicaksana Overseas.
Diversification Opportunities for Rig Tenders and Wicaksana Overseas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rig and Wicaksana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rig Tenders Tbk and Wicaksana Overseas Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicaksana Overseas and Rig Tenders 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 Rig Tenders Tbk are associated (or correlated) with Wicaksana Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicaksana Overseas has no effect on the direction of Rig Tenders i.e., Rig Tenders and Wicaksana Overseas go up and down completely randomly.
Pair Corralation between Rig Tenders and Wicaksana Overseas
If you would invest 67,000 in Rig Tenders Tbk on December 1, 2024 and sell it today you would earn a total of 4,500 from holding Rig Tenders Tbk or generate 6.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rig Tenders Tbk vs. Wicaksana Overseas Internation
Performance |
Timeline |
Rig Tenders Tbk |
Wicaksana Overseas |
Rig Tenders and Wicaksana Overseas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rig Tenders and Wicaksana Overseas
The main advantage of trading using opposite Rig Tenders and Wicaksana Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rig Tenders position performs unexpectedly, Wicaksana Overseas 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 Wicaksana Overseas will offset losses from the drop in Wicaksana Overseas' long position.Rig Tenders vs. Samudera Indonesia Tbk | Rig Tenders vs. Steady Safe TBK | Rig Tenders vs. Rukun Raharja Tbk | Rig Tenders vs. PT Temas Tbk |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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