Correlation Between Asahimas Flat and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Astra Graphia 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 Asahimas Flat and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asahimas Flat Glass and Astra Graphia Tbk, you can compare the effects of market volatilities on Asahimas Flat and Astra Graphia 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 Asahimas Flat with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Astra Graphia.
Diversification Opportunities for Asahimas Flat and Astra Graphia
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asahimas and Astra is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Asahimas Flat 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 Asahimas Flat Glass are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Astra Graphia go up and down completely randomly.
Pair Corralation between Asahimas Flat and Astra Graphia
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to generate 0.42 times more return on investment than Astra Graphia. However, Asahimas Flat Glass is 2.4 times less risky than Astra Graphia. It trades about -0.29 of its potential returns per unit of risk. Astra Graphia Tbk is currently generating about -0.22 per unit of risk. If you would invest 473,000 in Asahimas Flat Glass on September 1, 2024 and sell it today you would lose (13,000) from holding Asahimas Flat Glass or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Astra Graphia Tbk
Performance |
| Timeline |
| Asahimas Flat Glass |
| Astra Graphia Tbk |
Asahimas Flat and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Astra Graphia
The main advantage of trading using opposite Asahimas Flat and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Astra Graphia 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 Graphia will offset losses from the drop in Astra Graphia's long position.| Asahimas Flat vs. Matahari Department Store | Asahimas Flat vs. Multi Medika Internasional | Asahimas Flat vs. Visi Media Asia | Asahimas Flat vs. Bayan Resources Tbk |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
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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