Correlation Between Astra Graphia and Siloam International
Can any of the company-specific risk be diversified away by investing in both Astra Graphia and Siloam International 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 Siloam International 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 Siloam International Hospitals, you can compare the effects of market volatilities on Astra Graphia and Siloam International 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 Siloam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Graphia and Siloam International.
Diversification Opportunities for Astra Graphia and Siloam International
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astra and Siloam is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Astra Graphia Tbk and Siloam International Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siloam International 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 Siloam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siloam International has no effect on the direction of Astra Graphia i.e., Astra Graphia and Siloam International go up and down completely randomly.
Pair Corralation between Astra Graphia and Siloam International
Assuming the 90 days trading horizon Astra Graphia is expected to generate 25.09 times less return on investment than Siloam International. But when comparing it to its historical volatility, Astra Graphia Tbk is 2.69 times less risky than Siloam International. It trades about 0.01 of its potential returns per unit of risk. Siloam International Hospitals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 217,282 in Siloam International Hospitals on August 29, 2024 and sell it today you would earn a total of 84,718 from holding Siloam International Hospitals or generate 38.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Graphia Tbk vs. Siloam International Hospitals
Performance |
| Timeline |
| Astra Graphia Tbk |
| Siloam International |
Astra Graphia and Siloam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Graphia and Siloam International
The main advantage of trading using opposite Astra Graphia and Siloam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Graphia position performs unexpectedly, Siloam International 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 Siloam International will offset losses from the drop in Siloam International'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 |
| Siloam International vs. Mitra Keluarga Karyasehat | Siloam International vs. Matahari Department Store | Siloam International vs. Surya Citra Media | Siloam International vs. Sawit Sumbermas Sarana |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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