Correlation Between PEPKOR and Isetan Mitsukoshi

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

By analyzing existing cross correlation between PEPKOR LTD and Isetan Mitsukoshi Holdings, you can compare the effects of market volatilities on PEPKOR and Isetan Mitsukoshi 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 PEPKOR with a short position of Isetan Mitsukoshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPKOR and Isetan Mitsukoshi.

Diversification Opportunities for PEPKOR and Isetan Mitsukoshi

0.72

Correlation Coefficient

PEPKOR  Isetan Mitsukoshi

Poor diversification

The 3 months correlation between PEPKOR and Isetan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PEPKOR LTD and Isetan Mitsukoshi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isetan Mitsukoshi and PEPKOR 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 PEPKOR LTD are associated (or correlated) with Isetan Mitsukoshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isetan Mitsukoshi has no effect on the direction of PEPKOR i.e., PEPKOR and Isetan Mitsukoshi go up and down completely randomly.

Pair Corralation between PEPKOR and Isetan Mitsukoshi

Assuming the 90 days trading horizon PEPKOR is expected to generate 2.27 times less return on investment than Isetan Mitsukoshi. But when comparing it to its historical volatility, PEPKOR LTD is 1.15 times less risky than Isetan Mitsukoshi. It trades about 0.06 of its potential returns per unit of risk. Isetan Mitsukoshi Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,090  in Isetan Mitsukoshi Holdings on April 23, 2025 and sell it today you would earn a total of  160.00  from holding Isetan Mitsukoshi Holdings or generate 14.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

PEPKOR LTD  vs.  Isetan Mitsukoshi Holdings

PEPKOR LTD

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PEPKOR LTD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PEPKOR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Isetan Mitsukoshi

Risk-Adjusted Performance

OK

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

Pair Trading with PEPKOR and Isetan Mitsukoshi

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

The idea behind PEPKOR LTD and Isetan Mitsukoshi Holdings 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .