Correlation Between 2G ENERGY and PT Astra
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and PT Astra 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 2G ENERGY and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and PT Astra International, you can compare the effects of market volatilities on 2G ENERGY and PT Astra 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 2G ENERGY with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and PT Astra.
Diversification Opportunities for 2G ENERGY and PT Astra
Very good diversification
The 3 months correlation between 2GB and ASJA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and 2G ENERGY 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 2G ENERGY are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and PT Astra go up and down completely randomly.
Pair Corralation between 2G ENERGY and PT Astra
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the PT Astra. But the stock apears to be less risky and, when comparing its historical volatility, 2G ENERGY is 1.89 times less risky than PT Astra. The stock trades about -0.04 of its potential returns per unit of risk. The PT Astra International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24.00 in PT Astra International on September 1, 2024 and sell it today you would earn a total of 6.00 from holding PT Astra International or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
2G ENERGY vs. PT Astra International
Performance |
| Timeline |
| 2G ENERGY |
| PT Astra International |
2G ENERGY and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and PT Astra
The main advantage of trading using opposite 2G ENERGY and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, PT Astra 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 Astra will offset losses from the drop in PT Astra's long position.| 2G ENERGY vs. Australian Agricultural | 2G ENERGY vs. Ultra Clean Holdings | 2G ENERGY vs. Charter Communications | 2G ENERGY vs. Consolidated Communications Holdings |
| PT Astra vs. UNIVERSAL MUSIC GROUP | PT Astra vs. Pembina Pipeline Corp | PT Astra vs. CHEMICAL INDUSTRIES | PT Astra vs. UNIVMUSIC GRPADR050 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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