Correlation Between PPHE HOTEL and PT Astra
Can any of the company-specific risk be diversified away by investing in both PPHE HOTEL 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 PPHE HOTEL and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPHE HOTEL GROUP and PT Astra International, you can compare the effects of market volatilities on PPHE HOTEL 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 PPHE HOTEL with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE HOTEL and PT Astra.
Diversification Opportunities for PPHE HOTEL and PT Astra
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PPHE and ASJA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PPHE HOTEL GROUP 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 PPHE HOTEL 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 PPHE HOTEL GROUP 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 PPHE HOTEL i.e., PPHE HOTEL and PT Astra go up and down completely randomly.
Pair Corralation between PPHE HOTEL and PT Astra
Assuming the 90 days trading horizon PPHE HOTEL is expected to generate 1.01 times less return on investment than PT Astra. But when comparing it to its historical volatility, PPHE HOTEL GROUP is 2.54 times less risky than PT Astra. It trades about 0.04 of its potential returns per unit of risk. PT Astra International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 34.00 in PT Astra International on October 11, 2024 and sell it today you would lose (5.00) from holding PT Astra International or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
PPHE HOTEL GROUP vs. PT Astra International
Performance |
| Timeline |
| PPHE HOTEL GROUP |
| PT Astra International |
PPHE HOTEL and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE HOTEL and PT Astra
The main advantage of trading using opposite PPHE HOTEL and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE HOTEL 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.| PPHE HOTEL vs. T MOBILE US | PPHE HOTEL vs. Cogent Communications Holdings | PPHE HOTEL vs. MOBILE FACTORY INC | PPHE HOTEL vs. Air Transport Services |
| PT Astra vs. COVIVIO HOTELS INH | PT Astra vs. EMPEROR ENT HOTEL | PT Astra vs. PPHE HOTEL GROUP | PT Astra vs. Aya Gold Silver |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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