Correlation Between Perusahaan Perseroan and Atea ASA

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

Diversification Opportunities for Perusahaan Perseroan and Atea ASA

0.57

Correlation Coefficient

Perusahaan Perseroan  Atea ASA

Very weak diversification

The 3 months correlation between Perusahaan and Atea is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and Atea ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atea ASA 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 Atea ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atea ASA has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Atea ASA go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and Atea ASA

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the Atea ASA. In addition to that, Perusahaan Perseroan is 1.97 times more volatile than Atea ASA. It trades about -0.11 of its total potential returns per unit of risk. Atea ASA is currently generating about -0.01 per unit of volatility. If you would invest  1,162  in Atea ASA on December 21, 2024 and sell it today you would lose (12.00) from holding Atea ASA or give up 1.03% 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.  Atea ASA

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 uncertain 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.

Atea ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atea ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Atea ASA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Perusahaan Perseroan and Atea ASA

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

The idea behind Perusahaan Perseroan PT and Atea ASA 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.