Correlation Between Wicaksana Overseas and Rig Tenders

Can any of the company-specific risk be diversified away by investing in both Wicaksana Overseas and Rig Tenders 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 Wicaksana Overseas and Rig Tenders into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wicaksana Overseas International and Rig Tenders Tbk, you can compare the effects of market volatilities on Wicaksana Overseas and Rig Tenders 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 Wicaksana Overseas with a short position of Rig Tenders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicaksana Overseas and Rig Tenders.

Diversification Opportunities for Wicaksana Overseas and Rig Tenders

0.0

Correlation Coefficient

Wicaksana Overseas  Rig Tenders

Pay attention - limited upside

The 3 months correlation between Wicaksana and Rig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicaksana Overseas Internation and Rig Tenders Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rig Tenders Tbk and Wicaksana Overseas 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 Wicaksana Overseas International are associated (or correlated) with Rig Tenders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rig Tenders Tbk has no effect on the direction of Wicaksana Overseas i.e., Wicaksana Overseas and Rig Tenders go up and down completely randomly.

Pair Corralation between Wicaksana Overseas and Rig Tenders

If you would invest  66,000  in Rig Tenders Tbk on December 1, 2024 and sell it today you would earn a total of  5,500  from holding Rig Tenders Tbk or generate 8.33% return on investment over 90 days.

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

Wicaksana Overseas Internation  vs.  Rig Tenders Tbk

Wicaksana Overseas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wicaksana Overseas International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Wicaksana Overseas is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Rig Tenders Tbk

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rig Tenders Tbk are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Rig Tenders disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wicaksana Overseas and Rig Tenders

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

The idea behind Wicaksana Overseas International and Rig Tenders Tbk 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 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.