Correlation Between AIR PRODCHEMICALS and PT Bank

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

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

Diversification Opportunities for AIR PRODCHEMICALS and PT Bank

0.0

Correlation Coefficient

AIR PRODCHEMICALS  PT Bank

Pay attention - limited upside

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

Pair Corralation between AIR PRODCHEMICALS and PT Bank

If you would invest  23,521  in AIR PRODCHEMICALS on May 7, 2025 and sell it today you would earn a total of  959.00  from holding AIR PRODCHEMICALS or generate 4.08% return on investment over 90 days.

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

AIR PRODCHEMICALS  vs.  PT Bank CIMB

AIR PRODCHEMICALS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AIR PRODCHEMICALS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AIR PRODCHEMICALS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

PT Bank CIMB

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Bank CIMB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PT Bank is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AIR PRODCHEMICALS and PT Bank

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

The idea behind AIR PRODCHEMICALS and PT Bank CIMB 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.