Correlation Between Perusahaan Perseroan and FedEx Corp

Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and FedEx Corp 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 FedEx Corp 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 FedEx Corp, you can compare the effects of market volatilities on Perusahaan Perseroan and FedEx Corp 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 FedEx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and FedEx Corp.

Diversification Opportunities for Perusahaan Perseroan and FedEx Corp

0.53

Correlation Coefficient

Perusahaan Perseroan  FedEx Corp

Very weak diversification

The 3 months correlation between Perusahaan and FedEx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and FedEx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx Corp 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 FedEx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx Corp has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and FedEx Corp go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and FedEx Corp

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to generate 1.11 times more return on investment than FedEx Corp. However, Perusahaan Perseroan is 1.11 times more volatile than FedEx Corp. It trades about -0.11 of its potential returns per unit of risk. FedEx Corp is currently generating about -0.18 per unit of risk. If you would invest  1,520  in Perusahaan Perseroan PT on December 22, 2024 and sell it today you would lose (200.00) from holding Perusahaan Perseroan PT or give up 13.16% of portfolio value over 90 days.

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

Perusahaan Perseroan PT  vs.  FedEx Corp

Perusahaan Perseroan

Risk-Adjusted Performance

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

FedEx Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days FedEx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Perusahaan Perseroan and FedEx Corp

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

The idea behind Perusahaan Perseroan PT and FedEx Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.