Correlation Between Perusahaan Perseroan and PTT OILRETBUS

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

By analyzing existing cross correlation between Perusahaan Perseroan PT and PTT OILRETBUS FOR BA10, you can compare the effects of market volatilities on Perusahaan Perseroan and PTT OILRETBUS 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 Perusahaan Perseroan with a short position of PTT OILRETBUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and PTT OILRETBUS.

Diversification Opportunities for Perusahaan Perseroan and PTT OILRETBUS

0.66

Correlation Coefficient

Perusahaan Perseroan  PTT OILRETBUS

Poor diversification

The 3 months correlation between Perusahaan and PTT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and PTT OILRETBUS FOR BA10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OILRETBUS FOR and Perusahaan Perseroan 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 Perusahaan Perseroan PT are associated (or correlated) with PTT OILRETBUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OILRETBUS FOR has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and PTT OILRETBUS go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and PTT OILRETBUS

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to generate 0.65 times more return on investment than PTT OILRETBUS. However, Perusahaan Perseroan PT is 1.55 times less risky than PTT OILRETBUS. It trades about 0.19 of its potential returns per unit of risk. PTT OILRETBUS FOR BA10 is currently generating about -0.23 per unit of risk. If you would invest  1,470  in Perusahaan Perseroan PT on October 20, 2024 and sell it today you would earn a total of  90.00  from holding Perusahaan Perseroan PT or generate 6.12% return on investment over 90 days.

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

Perusahaan Perseroan PT  vs.  PTT OILRETBUS FOR BA10

Perusahaan Perseroan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perusahaan Perseroan PT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

PTT OILRETBUS FOR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT OILRETBUS FOR BA10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Perusahaan Perseroan and PTT OILRETBUS

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

The idea behind Perusahaan Perseroan PT and PTT OILRETBUS FOR BA10 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.