Correlation Between Cashlez Worldwide and PT Perma

Can any of the company-specific risk be diversified away by investing in both Cashlez Worldwide and PT Perma 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 Cashlez Worldwide and PT Perma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cashlez Worldwide Indonesia and PT Perma Plasindo, you can compare the effects of market volatilities on Cashlez Worldwide and PT Perma 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 Cashlez Worldwide with a short position of PT Perma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cashlez Worldwide and PT Perma.

Diversification Opportunities for Cashlez Worldwide and PT Perma

-0.62

Correlation Coefficient

Cashlez Worldwide  PT Perma

Excellent diversification

The 3 months correlation between Cashlez and BINO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cashlez Worldwide Indonesia and PT Perma Plasindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Perma Plasindo and Cashlez Worldwide 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 Cashlez Worldwide Indonesia are associated (or correlated) with PT Perma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Perma Plasindo has no effect on the direction of Cashlez Worldwide i.e., Cashlez Worldwide and PT Perma go up and down completely randomly.

Pair Corralation between Cashlez Worldwide and PT Perma

Assuming the 90 days trading horizon Cashlez Worldwide Indonesia is expected to generate 2.65 times more return on investment than PT Perma. However, Cashlez Worldwide is 2.65 times more volatile than PT Perma Plasindo. It trades about 0.09 of its potential returns per unit of risk. PT Perma Plasindo is currently generating about -0.06 per unit of risk. If you would invest  5,400  in Cashlez Worldwide Indonesia on April 25, 2025 and sell it today you would earn a total of  900.00  from holding Cashlez Worldwide Indonesia or generate 16.67% return on investment over 90 days.

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

Cashlez Worldwide Indonesia  vs.  PT Perma Plasindo

Cashlez Worldwide

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cashlez Worldwide Indonesia are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Cashlez Worldwide disclosed solid returns over the last few months and may actually be approaching a breakup point.

PT Perma Plasindo

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Perma Plasindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT Perma 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 Cashlez Worldwide and PT Perma

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

The idea behind Cashlez Worldwide Indonesia and PT Perma Plasindo 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.