Correlation Between PT Wintermar and InPlay Oil

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

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

Diversification Opportunities for PT Wintermar and InPlay Oil

0.16

Correlation Coefficient

PT Wintermar  InPlay Oil

Average diversification

The 3 months correlation between W6O and InPlay is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and PT Wintermar 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 PT Wintermar Offshore are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of PT Wintermar i.e., PT Wintermar and InPlay Oil go up and down completely randomly.

Pair Corralation between PT Wintermar and InPlay Oil

Assuming the 90 days horizon PT Wintermar Offshore is expected to under-perform the InPlay Oil. In addition to that, PT Wintermar is 1.43 times more volatile than InPlay Oil Corp. It trades about -0.11 of its total potential returns per unit of risk. InPlay Oil Corp is currently generating about 0.1 per unit of volatility. If you would invest  104.00  in InPlay Oil Corp on October 27, 2024 and sell it today you would earn a total of  6.00  from holding InPlay Oil Corp or generate 5.77% return on investment over 90 days.

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

PT Wintermar Offshore  vs.  InPlay Oil Corp

PT Wintermar Offshore

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Wintermar Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

InPlay Oil Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days InPlay Oil Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with PT Wintermar and InPlay Oil

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

The idea behind PT Wintermar Offshore and InPlay Oil Corp 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.