Correlation Between Akr Corporindo and Astra Otoparts
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Astra Otoparts 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 Akr Corporindo and Astra Otoparts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Astra Otoparts Tbk, you can compare the effects of market volatilities on Akr Corporindo and Astra Otoparts 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 Akr Corporindo with a short position of Astra Otoparts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Astra Otoparts.
Diversification Opportunities for Akr Corporindo and Astra Otoparts
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akr and Astra is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Astra Otoparts Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Otoparts Tbk and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Astra Otoparts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Otoparts Tbk has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Astra Otoparts go up and down completely randomly.
Pair Corralation between Akr Corporindo and Astra Otoparts
Assuming the 90 days trading horizon Akr Corporindo is expected to generate 3.06 times less return on investment than Astra Otoparts. But when comparing it to its historical volatility, Akr Corporindo Tbk is 1.21 times less risky than Astra Otoparts. It trades about 0.0 of its potential returns per unit of risk. Astra Otoparts Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 229,394 in Astra Otoparts Tbk on September 2, 2024 and sell it today you would earn a total of 1,606 from holding Astra Otoparts Tbk or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Astra Otoparts Tbk
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Astra Otoparts Tbk |
Akr Corporindo and Astra Otoparts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Astra Otoparts
The main advantage of trading using opposite Akr Corporindo and Astra Otoparts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Astra Otoparts 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 Astra Otoparts will offset losses from the drop in Astra Otoparts' long position.| Akr Corporindo vs. Matahari Department Store | Akr Corporindo vs. Multi Medika Internasional | Akr Corporindo vs. Visi Media Asia | Akr Corporindo vs. Bayan Resources Tbk |
| Astra Otoparts vs. Japfa Comfeed Indonesia | Astra Otoparts vs. Charoen Pokphand Indonesia | Astra Otoparts vs. Erajaya Swasembada Tbk | Astra Otoparts vs. Indofood Cbp Sukses |
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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