Correlation Between Catur Sentosa and Pan Brothers

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

By analyzing existing cross correlation between Catur Sentosa Adiprana and Pan Brothers Tbk, you can compare the effects of market volatilities on Catur Sentosa and Pan Brothers 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 Catur Sentosa with a short position of Pan Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catur Sentosa and Pan Brothers.

Diversification Opportunities for Catur Sentosa and Pan Brothers

-0.78

Correlation Coefficient

Catur Sentosa  Pan Brothers

Pay attention - limited upside

The 3 months correlation between Catur and Pan is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Catur Sentosa Adiprana and Pan Brothers Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Brothers Tbk and Catur Sentosa 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 Catur Sentosa Adiprana are associated (or correlated) with Pan Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Brothers Tbk has no effect on the direction of Catur Sentosa i.e., Catur Sentosa and Pan Brothers go up and down completely randomly.

Pair Corralation between Catur Sentosa and Pan Brothers

If you would invest  45,200  in Catur Sentosa Adiprana on October 9, 2024 and sell it today you would earn a total of  600.00  from holding Catur Sentosa Adiprana or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Catur Sentosa Adiprana  vs.  Pan Brothers Tbk

Catur Sentosa Adiprana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Catur Sentosa Adiprana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pan Brothers Tbk

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pan Brothers Tbk are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Pan Brothers disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Catur Sentosa and Pan Brothers

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

The idea behind Catur Sentosa Adiprana and Pan Brothers 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.