Correlation Between PT Wintermar and Lundin Gold

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

Diversification Opportunities for PT Wintermar and Lundin Gold

-0.22

Correlation Coefficient

PT Wintermar  Lundin Gold

Very good diversification

The 3 months correlation between W6O and Lundin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of PT Wintermar i.e., PT Wintermar and Lundin Gold go up and down completely randomly.

Pair Corralation between PT Wintermar and Lundin Gold

If you would invest  2.50  in PT Wintermar Offshore on October 8, 2024 and sell it today you would earn a total of  0.00  from holding PT Wintermar Offshore or generate 0.0% return on investment over 90 days.

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

PT Wintermar Offshore  vs.  Lundin Gold

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.

Lundin Gold

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Gold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lundin Gold may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with PT Wintermar and Lundin Gold

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

The idea behind PT Wintermar Offshore and Lundin Gold 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.