Correlation Between Astra Graphia and Enseval Putra
Can any of the company-specific risk be diversified away by investing in both Astra Graphia and Enseval Putra 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 Enseval Putra 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 Enseval Putra Megatrading, you can compare the effects of market volatilities on Astra Graphia and Enseval Putra 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 Enseval Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Graphia and Enseval Putra.
Diversification Opportunities for Astra Graphia and Enseval Putra
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Enseval is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astra Graphia Tbk and Enseval Putra Megatrading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enseval Putra Megatrading 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 Enseval Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enseval Putra Megatrading has no effect on the direction of Astra Graphia i.e., Astra Graphia and Enseval Putra go up and down completely randomly.
Pair Corralation between Astra Graphia and Enseval Putra
Assuming the 90 days trading horizon Astra Graphia Tbk is expected to generate 1.1 times more return on investment than Enseval Putra. However, Astra Graphia is 1.1 times more volatile than Enseval Putra Megatrading. It trades about 0.0 of its potential returns per unit of risk. Enseval Putra Megatrading is currently generating about 0.0 per unit of risk. If you would invest 86,190 in Astra Graphia Tbk on August 25, 2024 and sell it today you would lose (190.00) from holding Astra Graphia Tbk or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Graphia Tbk vs. Enseval Putra Megatrading
Performance |
| Timeline |
| Astra Graphia Tbk |
| Enseval Putra Megatrading |
Astra Graphia and Enseval Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Graphia and Enseval Putra
The main advantage of trading using opposite Astra Graphia and Enseval Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Graphia position performs unexpectedly, Enseval Putra 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 Enseval Putra will offset losses from the drop in Enseval Putra's long position.| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
| Enseval Putra vs. Astra Graphia Tbk | Enseval Putra vs. Hexindo Adiperkasa Tbk | Enseval Putra vs. Lautan Luas Tbk | Enseval Putra vs. Citra Marga Nusaphala |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |