Correlation Between PT Chandra and BASF SE

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

By analyzing existing cross correlation between PT Chandra Asri and BASF SE ADR, you can compare the effects of market volatilities on PT Chandra and BASF SE 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 PT Chandra with a short position of BASF SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Chandra and BASF SE.

Diversification Opportunities for PT Chandra and BASF SE

0.0

Correlation Coefficient

PT Chandra  BASF SE

Pay attention - limited upside

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

Pair Corralation between PT Chandra and BASF SE

If you would invest (100.00) in BASF SE ADR on August 26, 2025 and sell it today you would earn a total of  100.00  from holding BASF SE ADR or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PT Chandra Asri  vs.  BASF SE ADR

PT Chandra Asri

Risk-Adjusted Performance

Weakest

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

BASF SE ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days BASF SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with PT Chandra and BASF SE

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

The idea behind PT Chandra Asri and BASF SE ADR 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.