Correlation Between Pollux Properti and Karya Bersama

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

By analyzing existing cross correlation between Pollux Properti Indonesia and Karya Bersama Anugerah, you can compare the effects of market volatilities on Pollux Properti and Karya Bersama 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 Pollux Properti with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Properti and Karya Bersama.

Diversification Opportunities for Pollux Properti and Karya Bersama

0.0

Correlation Coefficient

Pollux Properti  Karya Bersama

Pay attention - limited upside

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

Pair Corralation between Pollux Properti and Karya Bersama

If you would invest  2,000  in Karya Bersama Anugerah on November 20, 2024 and sell it today you would earn a total of  100.00  from holding Karya Bersama Anugerah or generate 5.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pollux Properti Indonesia  vs.  Karya Bersama Anugerah

Pollux Properti Indonesia

Risk-Adjusted Performance

Very Weak

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

Karya Bersama Anugerah

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Karya Bersama Anugerah are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Karya Bersama may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Pollux Properti and Karya Bersama

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

The idea behind Pollux Properti Indonesia and Karya Bersama Anugerah 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..