Correlation Between Waskita Beton and PP Properti

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

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

Diversification Opportunities for Waskita Beton and PP Properti

0.0

Correlation Coefficient

Waskita Beton  PP Properti

Pay attention - limited upside

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

Pair Corralation between Waskita Beton and PP Properti

If you would invest  2,100  in PP Properti Tbk on November 29, 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	100.0%
Values	Daily Returns

Waskita Beton Precast  vs.  PP Properti Tbk

Waskita Beton Precast

Risk-Adjusted Performance

Very Weak

Over the last 90 days Waskita Beton Precast 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 March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.

Pair Trading with Waskita Beton and PP Properti

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

The idea behind Waskita Beton Precast and PP Properti 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.