Correlation Between SYSTEMAIR and PT Global

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

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

Diversification Opportunities for SYSTEMAIR and PT Global

0.42

Correlation Coefficient

SYSTEMAIR  PT Global

Very weak diversification

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

Pair Corralation between SYSTEMAIR and PT Global

Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 0.21 times more return on investment than PT Global. However, SYSTEMAIR AB is 4.66 times less risky than PT Global. It trades about -0.01 of its potential returns per unit of risk. PT Global Mediacom is currently generating about -0.11 per unit of risk. 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

SYSTEMAIR AB  vs.  PT Global Mediacom

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.

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.

Pair Trading with SYSTEMAIR and PT Global

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

The idea behind SYSTEMAIR AB and PT Global Mediacom 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.