Correlation Between PT Ketrosden and PT Puri

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

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

Diversification Opportunities for PT Ketrosden and PT Puri

0.24

Correlation Coefficient

PT Ketrosden  PT Puri

Modest diversification

The 3 months correlation between KETR and KDTN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PT Ketrosden Triasmitra and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and PT Ketrosden 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 Ketrosden Triasmitra are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of PT Ketrosden i.e., PT Ketrosden and PT Puri go up and down completely randomly.

Pair Corralation between PT Ketrosden and PT Puri

Assuming the 90 days trading horizon PT Ketrosden Triasmitra is expected to under-perform the PT Puri. In addition to that, PT Ketrosden is 1.43 times more volatile than PT Puri Sentul. It trades about -0.02 of its total potential returns per unit of risk. PT Puri Sentul is currently generating about 0.01 per unit of volatility. If you would invest  12,100  in PT Puri Sentul on September 14, 2024 and sell it today you would lose (100.00) from holding PT Puri Sentul or give up 0.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

PT Ketrosden Triasmitra  vs.  PT Puri Sentul

PT Ketrosden Triasmitra

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Ketrosden Triasmitra 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.

PT Puri Sentul

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Puri Sentul are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, PT Puri is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PT Ketrosden and PT Puri

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

The idea behind PT Ketrosden Triasmitra and PT Puri Sentul 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.