Correlation Between PT Data and PT Pelayaran

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

By analyzing existing cross correlation between PT Data Sinergitama and PT Pelayaran Tamarin, you can compare the effects of market volatilities on PT Data and PT Pelayaran 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 Data with a short position of PT Pelayaran. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and PT Pelayaran.

Diversification Opportunities for PT Data and PT Pelayaran

-0.53

Correlation Coefficient

PT Data  PT Pelayaran

Excellent diversification

The 3 months correlation between ELIT and TAMU is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and PT Pelayaran Tamarin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Pelayaran Tamarin and PT Data 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 Data Sinergitama are associated (or correlated) with PT Pelayaran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Pelayaran Tamarin has no effect on the direction of PT Data i.e., PT Data and PT Pelayaran go up and down completely randomly.

Pair Corralation between PT Data and PT Pelayaran

Assuming the 90 days trading horizon PT Data Sinergitama is expected to generate 0.53 times more return on investment than PT Pelayaran. However, PT Data Sinergitama is 1.89 times less risky than PT Pelayaran. It trades about 0.03 of its potential returns per unit of risk. PT Pelayaran Tamarin is currently generating about -0.12 per unit of risk. If you would invest  11,000  in PT Data Sinergitama on September 4, 2024 and sell it today you would earn a total of  300.00  from holding PT Data Sinergitama or generate 2.73% return on investment over 90 days.

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

PT Data Sinergitama  vs.  PT Pelayaran Tamarin

PT Data Sinergitama

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Data Sinergitama are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, PT Data is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

PT Pelayaran Tamarin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Pelayaran Tamarin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PT Data and PT Pelayaran

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

The idea behind PT Data Sinergitama and PT Pelayaran Tamarin 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.

Check out your portfolio center.

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.