Correlation Between Astra International and Hoffmen Cleanindo
Can any of the company-specific risk be diversified away by investing in both Astra International and Hoffmen Cleanindo 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 Hoffmen Cleanindo 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 Hoffmen Cleanindo, you can compare the effects of market volatilities on Astra International and Hoffmen Cleanindo 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 Hoffmen Cleanindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Hoffmen Cleanindo.
Diversification Opportunities for Astra International and Hoffmen Cleanindo
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astra and Hoffmen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Hoffmen Cleanindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoffmen Cleanindo 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 Hoffmen Cleanindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoffmen Cleanindo has no effect on the direction of Astra International i.e., Astra International and Hoffmen Cleanindo go up and down completely randomly.
Pair Corralation between Astra International and Hoffmen Cleanindo
Assuming the 90 days trading horizon Astra International Tbk is expected to under-perform the Hoffmen Cleanindo. But the stock apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 1.49 times less risky than Hoffmen Cleanindo. The stock trades about -0.08 of its potential returns per unit of risk. The Hoffmen Cleanindo is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 16,900 in Hoffmen Cleanindo on August 28, 2024 and sell it today you would lose (200.00) from holding Hoffmen Cleanindo or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Hoffmen Cleanindo
Performance |
| Timeline |
| Astra International Tbk |
| Hoffmen Cleanindo |
Astra International and Hoffmen Cleanindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Hoffmen Cleanindo
The main advantage of trading using opposite Astra International and Hoffmen Cleanindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Hoffmen Cleanindo 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 Hoffmen Cleanindo will offset losses from the drop in Hoffmen Cleanindo'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 |
| Hoffmen Cleanindo vs. Bank Central Asia | Hoffmen Cleanindo vs. Bank Rakyat Indonesia | Hoffmen Cleanindo vs. Bayan Resources Tbk | Hoffmen Cleanindo vs. Bank Mandiri Persero |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |