Correlation Between Alstria Office and PT Astra
Can any of the company-specific risk be diversified away by investing in both Alstria Office 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 Alstria Office and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alstria office REIT AG and PT Astra International, you can compare the effects of market volatilities on Alstria Office 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 Alstria Office with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and PT Astra.
Diversification Opportunities for Alstria Office and PT Astra
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alstria and ASJA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG 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 Alstria Office 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 alstria office REIT AG 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 Alstria Office i.e., Alstria Office and PT Astra go up and down completely randomly.
Pair Corralation between Alstria Office and PT Astra
Assuming the 90 days horizon alstria office REIT AG is expected to generate 1.09 times more return on investment than PT Astra. However, Alstria Office is 1.09 times more volatile than PT Astra International. It trades about 0.11 of its potential returns per unit of risk. PT Astra International is currently generating about 0.03 per unit of risk. If you would invest 329.00 in alstria office REIT AG on October 26, 2024 and sell it today you would earn a total of 223.00 from holding alstria office REIT AG or generate 67.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. PT Astra International
Performance |
| Timeline |
| alstria office REIT |
| PT Astra International |
Alstria Office and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and PT Astra
The main advantage of trading using opposite Alstria Office and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office 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.| Alstria Office vs. Meta Financial Group | Alstria Office vs. Easy Software AG | Alstria Office vs. Discover Financial Services | Alstria Office vs. Chiba Bank |
| PT Astra vs. FANDIFI TECHNOLOGY P | PT Astra vs. Kingdee International Software | PT Astra vs. CN DATANG C | PT Astra vs. DATADOT TECHNOLOGY |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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