Correlation Between Perusahaan Perseroan and PHENIXFIN

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

Diversification Opportunities for Perusahaan Perseroan and PHENIXFIN

-0.52

Correlation Coefficient

Perusahaan Perseroan  PHENIXFIN

Excellent diversification

The 3 months correlation between Perusahaan and PHENIXFIN is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and PHENIXFIN P DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHENIXFIN P DL 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 PHENIXFIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHENIXFIN P DL has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and PHENIXFIN go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and PHENIXFIN

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the PHENIXFIN. In addition to that, Perusahaan Perseroan is 2.2 times more volatile than PHENIXFIN P DL. It trades about -0.07 of its total potential returns per unit of risk. PHENIXFIN P DL is currently generating about 0.16 per unit of volatility. If you would invest  4,100  in PHENIXFIN P DL on September 28, 2024 and sell it today you would earn a total of  580.00  from holding PHENIXFIN P DL or generate 14.15% 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.  PHENIXFIN P DL

Perusahaan Perseroan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perusahaan Perseroan PT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PHENIXFIN P DL

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PHENIXFIN P DL are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, PHENIXFIN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perusahaan Perseroan and PHENIXFIN

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

The idea behind Perusahaan Perseroan PT and PHENIXFIN P DL 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.