Correlation Between Wicaksana Overseas and Tempo Inti

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

Diversification Opportunities for Wicaksana Overseas and Tempo Inti

0.0

Correlation Coefficient

Wicaksana Overseas  Tempo Inti

Pay attention - limited upside

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

Pair Corralation between Wicaksana Overseas and Tempo Inti

If you would invest  12,000  in Tempo Inti Media on December 1, 2024 and sell it today you would earn a total of  1,300  from holding Tempo Inti Media or generate 10.83% 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.  Tempo Inti Media

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.

Tempo Inti Media

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tempo Inti Media are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Tempo Inti disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wicaksana Overseas and Tempo Inti

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

The idea behind Wicaksana Overseas International and Tempo Inti Media 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.