Correlation Between PP Properti and PP Presisi

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

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

Diversification Opportunities for PP Properti and PP Presisi

0.0

Correlation Coefficient

PP Properti  PP Presisi

Pay attention - limited upside

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

Pair Corralation between PP Properti and PP Presisi

If you would invest  2,100  in PP Properti Tbk on December 2, 2024 and sell it today you would earn a total of  0.00  from holding PP Properti Tbk or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.5%
Values	Daily Returns

PP Properti Tbk  vs.  PP Presisi Tbk

PP Properti Tbk

Risk-Adjusted Performance

Very Weak

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

PP Presisi Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days PP Presisi Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PP Properti and PP Presisi

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

The idea behind PP Properti Tbk and PP Presisi 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.