Correlation Between PT Wintermar and Aptiv PLC

Can any of the company-specific risk be diversified away by investing in both PT Wintermar and Aptiv PLC 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 Aptiv PLC 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 Aptiv PLC, you can compare the effects of market volatilities on PT Wintermar and Aptiv PLC 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 Aptiv PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Aptiv PLC.

Diversification Opportunities for PT Wintermar and Aptiv PLC

0.0

Correlation Coefficient

PT Wintermar  Aptiv PLC

Pay attention - limited upside

The 3 months correlation between W6O and Aptiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Aptiv PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptiv PLC 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 Aptiv PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptiv PLC has no effect on the direction of PT Wintermar i.e., PT Wintermar and Aptiv PLC go up and down completely randomly.

Pair Corralation between PT Wintermar and Aptiv PLC

If you would invest  5,351  in Aptiv PLC on October 8, 2024 and sell it today you would earn a total of  136.00  from holding Aptiv PLC or generate 2.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

PT Wintermar Offshore  vs.  Aptiv PLC

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 unsteady 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.

Aptiv PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aptiv PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aptiv PLC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PT Wintermar and Aptiv PLC

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

The idea behind PT Wintermar Offshore and Aptiv PLC 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.