Correlation Between Perusahaan Perseroan and Walt Disney

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

Diversification Opportunities for Perusahaan Perseroan and Walt Disney

0.56

Correlation Coefficient

Perusahaan Perseroan  Walt Disney

Very weak diversification

The 3 months correlation between Perusahaan and Walt is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and The Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney 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 Walt Disney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walt Disney has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Walt Disney go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and Walt Disney

Assuming the 90 days horizon Perusahaan Perseroan is expected to generate 2.17 times less return on investment than Walt Disney. But when comparing it to its historical volatility, Perusahaan Perseroan PT is 1.06 times less risky than Walt Disney. It trades about 0.12 of its potential returns per unit of risk. The Walt Disney is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  7,667  in The Walt Disney on April 23, 2025 and sell it today you would earn a total of  2,687  from holding The Walt Disney or generate 35.05% return on investment over 90 days.

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

Perusahaan Perseroan PT  vs.  The Walt Disney

Perusahaan Perseroan

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perusahaan Perseroan PT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Perusahaan Perseroan reported solid returns over the last few months and may actually be approaching a breakup point.

Walt Disney

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Walt Disney are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Walt Disney reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perusahaan Perseroan and Walt Disney

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

The idea behind Perusahaan Perseroan PT and The Walt Disney 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.