Correlation Between Astra Graphia and Asiaplast Industries
Can any of the company-specific risk be diversified away by investing in both Astra Graphia and Asiaplast Industries 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 Astra Graphia and Asiaplast Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Graphia Tbk and Asiaplast Industries Tbk, you can compare the effects of market volatilities on Astra Graphia and Asiaplast Industries 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 Astra Graphia with a short position of Asiaplast Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Graphia and Asiaplast Industries.
Diversification Opportunities for Astra Graphia and Asiaplast Industries
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Asiaplast is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astra Graphia Tbk and Asiaplast Industries Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiaplast Industries Tbk and Astra Graphia 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 Astra Graphia Tbk are associated (or correlated) with Asiaplast Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiaplast Industries Tbk has no effect on the direction of Astra Graphia i.e., Astra Graphia and Asiaplast Industries go up and down completely randomly.
Pair Corralation between Astra Graphia and Asiaplast Industries
Assuming the 90 days trading horizon Astra Graphia is expected to generate 21.7 times less return on investment than Asiaplast Industries. But when comparing it to its historical volatility, Astra Graphia Tbk is 3.11 times less risky than Asiaplast Industries. It trades about 0.01 of its potential returns per unit of risk. Asiaplast Industries Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,354 in Asiaplast Industries Tbk on September 2, 2024 and sell it today you would earn a total of 12,646 from holding Asiaplast Industries Tbk or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Graphia Tbk vs. Asiaplast Industries Tbk
Performance |
| Timeline |
| Astra Graphia Tbk |
| Asiaplast Industries Tbk |
Astra Graphia and Asiaplast Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Graphia and Asiaplast Industries
The main advantage of trading using opposite Astra Graphia and Asiaplast Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Graphia position performs unexpectedly, Asiaplast Industries 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 Asiaplast Industries will offset losses from the drop in Asiaplast Industries' long position.| Astra Graphia vs. Matahari Department Store | Astra Graphia vs. Multi Medika Internasional | Astra Graphia vs. Visi Media Asia | Astra Graphia vs. Bayan Resources Tbk |
| Asiaplast Industries vs. Argha Karya Prima | Asiaplast Industries vs. Alumindo Light Metal | Asiaplast Industries vs. Anugerah Kagum Karya | Asiaplast Industries vs. Asahimas Flat Glass |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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