Correlation Between PT Wintermar and Strer SE

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

Diversification Opportunities for PT Wintermar and Strer SE

0.23

Correlation Coefficient

PT Wintermar  Strer SE

Modest diversification

The 3 months correlation between W6O and Strer is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE 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 Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of PT Wintermar i.e., PT Wintermar and Strer SE go up and down completely randomly.

Pair Corralation between PT Wintermar and Strer SE

Assuming the 90 days horizon PT Wintermar Offshore is expected to generate 8.13 times more return on investment than Strer SE. However, PT Wintermar is 8.13 times more volatile than Strer SE Co. It trades about 0.06 of its potential returns per unit of risk. Strer SE Co is currently generating about -0.01 per unit of risk. If you would invest  1.85  in PT Wintermar Offshore on October 9, 2024 and sell it today you would earn a total of  0.65  from holding PT Wintermar Offshore or generate 35.14% return on investment over 90 days.

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

PT Wintermar Offshore  vs.  Strer SE Co

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.

Strer SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Strer SE Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with PT Wintermar and Strer SE

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

The idea behind PT Wintermar Offshore and Strer SE Co 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.