Correlation Between PT Chandra and STRATEC Biomedical

Can any of the company-specific risk be diversified away by investing in both PT Chandra and STRATEC Biomedical 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 STRATEC Biomedical 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 STRATEC Biomedical AG, you can compare the effects of market volatilities on PT Chandra and STRATEC Biomedical 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 STRATEC Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Chandra and STRATEC Biomedical.

Diversification Opportunities for PT Chandra and STRATEC Biomedical

1.0

Correlation Coefficient

PT Chandra  STRATEC Biomedical

No risk reduction

The 3 months correlation between PTPIF and STRATEC is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Chandra Asri and STRATEC Biomedical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATEC Biomedical 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 STRATEC Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATEC Biomedical has no effect on the direction of PT Chandra i.e., PT Chandra and STRATEC Biomedical go up and down completely randomly.

Pair Corralation between PT Chandra and STRATEC Biomedical

If you would invest  7,296  in STRATEC Biomedical AG on July 7, 2025 and sell it today you would earn a total of  0.00  from holding STRATEC Biomedical AG or generate 0.0% return on investment over 90 days.

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

PT Chandra Asri  vs.  STRATEC Biomedical AG

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

STRATEC Biomedical

Risk-Adjusted Performance

Weakest

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

Pair Trading with PT Chandra and STRATEC Biomedical

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

The idea behind PT Chandra Asri and STRATEC Biomedical AG 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.