Correlation Between Perusahaan Perseroan and CCC SA

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

Diversification Opportunities for Perusahaan Perseroan and CCC SA

-0.59

Correlation Coefficient

Perusahaan Perseroan  CCC SA

Excellent diversification

The 3 months correlation between Perusahaan and CCC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and CCC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC SA 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 CCC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC SA has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and CCC SA go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and CCC SA

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to generate 0.67 times more return on investment than CCC SA. However, Perusahaan Perseroan PT is 1.48 times less risky than CCC SA. It trades about 0.11 of its potential returns per unit of risk. CCC SA is currently generating about -0.03 per unit of risk. If you would invest  1,289  in Perusahaan Perseroan PT on April 25, 2025 and sell it today you would earn a total of  171.00  from holding Perusahaan Perseroan PT or generate 13.27% return on investment over 90 days.

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

Perusahaan Perseroan PT  vs.  CCC SA

Perusahaan Perseroan

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Perusahaan Perseroan PT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Perusahaan Perseroan reported solid returns over the last few months and may actually be approaching a breakup point.

CCC SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CCC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CCC SA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Perusahaan Perseroan and CCC SA

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

The idea behind Perusahaan Perseroan PT and CCC SA 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.