Correlation Between LANDSEA GREEN and PT Astra
Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN 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 LANDSEA GREEN and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and PT Astra International, you can compare the effects of market volatilities on LANDSEA GREEN 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 LANDSEA GREEN with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and PT Astra.
Diversification Opportunities for LANDSEA GREEN and PT Astra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LANDSEA and ASJA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN 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 LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN i.e., LANDSEA GREEN and PT Astra go up and down completely randomly.
Pair Corralation between LANDSEA GREEN and PT Astra
Assuming the 90 days horizon LANDSEA GREEN MANAGEMENT is expected to generate 16.41 times more return on investment than PT Astra. However, LANDSEA GREEN is 16.41 times more volatile than PT Astra International. It trades about 0.07 of its potential returns per unit of risk. PT Astra International is currently generating about 0.02 per unit of risk. If you would invest 1.45 in LANDSEA GREEN MANAGEMENT on September 12, 2024 and sell it today you would lose (1.35) from holding LANDSEA GREEN MANAGEMENT or give up 93.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA GREEN MANAGEMENT vs. PT Astra International
Performance |
| Timeline |
| LANDSEA GREEN MANAGEMENT |
| PT Astra International |
LANDSEA GREEN and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA GREEN and PT Astra
The main advantage of trading using opposite LANDSEA GREEN and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN 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.| LANDSEA GREEN vs. Superior Plus Corp | LANDSEA GREEN vs. NMI Holdings | LANDSEA GREEN vs. SIVERS SEMICONDUCTORS AB | LANDSEA GREEN vs. NorAm Drilling AS |
| PT Astra vs. Brockhaus Capital Management | PT Astra vs. ITALIAN WINE BRANDS | PT Astra vs. LANDSEA GREEN MANAGEMENT | PT Astra vs. Marie Brizard Wine |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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