Correlation Between Astra Graphia and Modern Internasional
Can any of the company-specific risk be diversified away by investing in both Astra Graphia and Modern Internasional 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 Modern Internasional 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 Modern Internasional Tbk, you can compare the effects of market volatilities on Astra Graphia and Modern Internasional 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 Modern Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Graphia and Modern Internasional.
Diversification Opportunities for Astra Graphia and Modern Internasional
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Modern is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Astra Graphia Tbk and Modern Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modern Internasional 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 Modern Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modern Internasional Tbk has no effect on the direction of Astra Graphia i.e., Astra Graphia and Modern Internasional go up and down completely randomly.
Pair Corralation between Astra Graphia and Modern Internasional
Assuming the 90 days trading horizon Astra Graphia Tbk is expected to generate 0.16 times more return on investment than Modern Internasional. However, Astra Graphia Tbk is 6.39 times less risky than Modern Internasional. It trades about -0.18 of its potential returns per unit of risk. Modern Internasional Tbk is currently generating about -0.07 per unit of risk. If you would invest 89,000 in Astra Graphia Tbk on August 30, 2024 and sell it today you would lose (4,000) from holding Astra Graphia Tbk or give up 4.49% 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. Modern Internasional Tbk
Performance |
| Timeline |
| Astra Graphia Tbk |
| Modern Internasional Tbk |
Astra Graphia and Modern Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Graphia and Modern Internasional
The main advantage of trading using opposite Astra Graphia and Modern Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Graphia position performs unexpectedly, Modern Internasional 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 Modern Internasional will offset losses from the drop in Modern Internasional'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 |
| Modern Internasional vs. Merdeka Copper Gold | Modern Internasional vs. Tower Bersama Infrastructure | Modern Internasional vs. Erajaya Swasembada Tbk | Modern Internasional vs. Surya Citra Media |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |