Correlation Between Astra International and Pelayaran Nelly
Can any of the company-specific risk be diversified away by investing in both Astra International and Pelayaran Nelly 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 Pelayaran Nelly 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 Pelayaran Nelly Dwi, you can compare the effects of market volatilities on Astra International and Pelayaran Nelly 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 Pelayaran Nelly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Pelayaran Nelly.
Diversification Opportunities for Astra International and Pelayaran Nelly
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astra and Pelayaran is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Pelayaran Nelly Dwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Nelly Dwi 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 Pelayaran Nelly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Nelly Dwi has no effect on the direction of Astra International i.e., Astra International and Pelayaran Nelly go up and down completely randomly.
Pair Corralation between Astra International and Pelayaran Nelly
Assuming the 90 days trading horizon Astra International is expected to generate 7.52 times less return on investment than Pelayaran Nelly. But when comparing it to its historical volatility, Astra International Tbk is 1.75 times less risky than Pelayaran Nelly. It trades about 0.01 of its potential returns per unit of risk. Pelayaran Nelly Dwi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 25,755 in Pelayaran Nelly Dwi on November 5, 2024 and sell it today you would earn a total of 18,045 from holding Pelayaran Nelly Dwi or generate 70.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Astra International Tbk vs. Pelayaran Nelly Dwi
Performance |
| Timeline |
| Astra International Tbk |
| Pelayaran Nelly Dwi |
Astra International and Pelayaran Nelly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Pelayaran Nelly
The main advantage of trading using opposite Astra International and Pelayaran Nelly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Pelayaran Nelly 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 Pelayaran Nelly will offset losses from the drop in Pelayaran Nelly'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 |
| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |