Correlation Between Puri Global and Pollux Investasi

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Can any of the company-specific risk be diversified away by investing in both Puri Global and Pollux Investasi 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 Puri Global and Pollux Investasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puri Global Sukses and Pollux Investasi Internasional, you can compare the effects of market volatilities on Puri Global and Pollux Investasi 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 Puri Global with a short position of Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puri Global and Pollux Investasi.

Diversification Opportunities for Puri Global and Pollux Investasi

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Puri and Pollux is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Puri Global Sukses and Pollux Investasi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Investasi Int and Puri Global 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 Puri Global Sukses are associated (or correlated) with Pollux Investasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Investasi Int has no effect on the direction of Puri Global i.e., Puri Global and Pollux Investasi go up and down completely randomly.

Pair Corralation between Puri Global and Pollux Investasi

Assuming the 90 days trading horizon Puri Global Sukses is expected to generate 3.94 times more return on investment than Pollux Investasi. However, Puri Global is 3.94 times more volatile than Pollux Investasi Internasional. It trades about 0.14 of its potential returns per unit of risk. Pollux Investasi Internasional is currently generating about -0.01 per unit of risk. If you would invest  19,200  in Puri Global Sukses on October 12, 2024 and sell it today you would earn a total of  8,200  from holding Puri Global Sukses or generate 42.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Puri Global Sukses  vs.  Pollux Investasi Internasional

 Performance 
       Timeline  
Puri Global Sukses 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Puri Global Sukses are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Puri Global disclosed solid returns over the last few months and may actually be approaching a breakup point.
Pollux Investasi Int 

Risk-Adjusted Performance

0 of 100

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

Puri Global and Pollux Investasi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Puri Global and Pollux Investasi

The main advantage of trading using opposite Puri Global and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puri Global position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi's long position.
The idea behind Puri Global Sukses and Pollux Investasi Internasional 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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