Correlation Between Astra International and Cipta Selera
Can any of the company-specific risk be diversified away by investing in both Astra International and Cipta Selera 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 International and Cipta Selera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra International Tbk and Cipta Selera Murni, you can compare the effects of market volatilities on Astra International and Cipta Selera 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 International with a short position of Cipta Selera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Cipta Selera.
Diversification Opportunities for Astra International and Cipta Selera
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Cipta is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni and Astra International 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 International Tbk are associated (or correlated) with Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of Astra International i.e., Astra International and Cipta Selera go up and down completely randomly.
Pair Corralation between Astra International and Cipta Selera
If you would invest (100.00) in Cipta Selera Murni on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Cipta Selera Murni or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astra International Tbk vs. Cipta Selera Murni
Performance |
| Timeline |
| Astra International Tbk |
| Cipta Selera Murni |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Astra International and Cipta Selera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Cipta Selera
The main advantage of trading using opposite Astra International and Cipta Selera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Cipta Selera 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 Cipta Selera will offset losses from the drop in Cipta Selera's long position.| Astra International vs. Telkom Indonesia Tbk | Astra International vs. Bank Mandiri Persero | Astra International vs. Bank Central Asia | Astra International vs. PT Indofood Sukses |
| Cipta Selera vs. Galva Technologies Tbk | Cipta Selera vs. Fast Food Indonesia | Cipta Selera vs. PT Indofood Sukses | Cipta Selera vs. Diamond Food Indonesia |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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