Correlation Between Wulandari Bangun and Pelayaran Nasional

Can any of the company-specific risk be diversified away by investing in both Wulandari Bangun and Pelayaran Nasional 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 Wulandari Bangun and Pelayaran Nasional into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wulandari Bangun Laksana and Pelayaran Nasional Bina, you can compare the effects of market volatilities on Wulandari Bangun and Pelayaran Nasional 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 Wulandari Bangun with a short position of Pelayaran Nasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wulandari Bangun and Pelayaran Nasional.

Diversification Opportunities for Wulandari Bangun and Pelayaran Nasional

0.0

Correlation Coefficient

Wulandari Bangun  Pelayaran Nasional

Pay attention - limited upside

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

Pair Corralation between Wulandari Bangun and Pelayaran Nasional

If you would invest (100.00) in Wulandari Bangun Laksana on September 17, 2024 and sell it today you would earn a total of  100.00  from holding Wulandari Bangun Laksana or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Wulandari Bangun Laksana  vs.  Pelayaran Nasional Bina

Wulandari Bangun Laksana

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pelayaran Nasional Bina

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Wulandari Bangun and Pelayaran Nasional

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

The idea behind Wulandari Bangun Laksana and Pelayaran Nasional Bina 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.