Correlation Between PT Global and SYSTEMAIR

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

By analyzing existing cross correlation between PT Global Mediacom and SYSTEMAIR AB, you can compare the effects of market volatilities on PT Global and SYSTEMAIR 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 Global with a short position of SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and SYSTEMAIR.

Diversification Opportunities for PT Global and SYSTEMAIR

0.42

Correlation Coefficient

PT Global  SYSTEMAIR

Very weak diversification

The 3 months correlation between 06L and SYSTEMAIR is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB and PT Global 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 Global Mediacom are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of PT Global i.e., PT Global and SYSTEMAIR go up and down completely randomly.

Pair Corralation between PT Global and SYSTEMAIR

Assuming the 90 days trading horizon PT Global Mediacom is expected to under-perform the SYSTEMAIR. In addition to that, PT Global is 4.66 times more volatile than SYSTEMAIR AB. It trades about -0.11 of its total potential returns per unit of risk. SYSTEMAIR AB is currently generating about -0.01 per unit of volatility. If you would invest  768.00  in SYSTEMAIR AB on December 21, 2024 and sell it today you would lose (18.00) from holding SYSTEMAIR AB or give up 2.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

PT Global Mediacom  vs.  SYSTEMAIR AB

PT Global Mediacom

Risk-Adjusted Performance

Very Weak

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

SYSTEMAIR AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days SYSTEMAIR AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SYSTEMAIR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PT Global and SYSTEMAIR

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

The idea behind PT Global Mediacom and SYSTEMAIR AB 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 Transaction History module to view history of all your transactions and understand their impact on performance.