Correlation Between Adecco and PT Astra
Can any of the company-specific risk be diversified away by investing in both Adecco 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 Adecco and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adecco Group and PT Astra International, you can compare the effects of market volatilities on Adecco 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 Adecco with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco and PT Astra.
Diversification Opportunities for Adecco and PT Astra
Poor diversification
The 3 months correlation between Adecco and PTAIF is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Adecco 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 Adecco 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 Adecco 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 Adecco i.e., Adecco and PT Astra go up and down completely randomly.
Pair Corralation between Adecco and PT Astra
Assuming the 90 days horizon Adecco Group is expected to under-perform the PT Astra. But the pink sheet apears to be less risky and, when comparing its historical volatility, Adecco Group is 1.12 times less risky than PT Astra. The pink sheet trades about -0.02 of its potential returns per unit of risk. The PT Astra International is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 27.00 in PT Astra International on November 2, 2024 and sell it today you would earn a total of 3.00 from holding PT Astra International or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adecco Group vs. PT Astra International
Performance |
| Timeline |
| Adecco Group |
| PT Astra International |
Adecco and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco and PT Astra
The main advantage of trading using opposite Adecco and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco 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.| Adecco vs. ManpowerGroup | Adecco vs. Robert Half International | Adecco vs. Hire Technologies | Adecco vs. The Caldwell Partners |
| PT Astra vs. Sumitomo Chemical Co | PT Astra vs. AB SKF | PT Astra vs. Adecco Group | PT Astra vs. Nitto Denko Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |