Correlation Between Astra International and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Astra International and Paninvest Tbk 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 Paninvest Tbk 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 Paninvest Tbk, you can compare the effects of market volatilities on Astra International and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Paninvest Tbk.
Diversification Opportunities for Astra International and Paninvest Tbk
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astra and Paninvest is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Astra International i.e., Astra International and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Astra International and Paninvest Tbk
Assuming the 90 days trading horizon Astra International Tbk is expected to under-perform the Paninvest Tbk. In addition to that, Astra International is 1.09 times more volatile than Paninvest Tbk. It trades about -0.08 of its total potential returns per unit of risk. Paninvest Tbk is currently generating about 0.04 per unit of volatility. If you would invest 103,500 in Paninvest Tbk on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Paninvest Tbk or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Paninvest Tbk
Performance |
| Timeline |
| Astra International Tbk |
| Paninvest Tbk |
Astra International and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Paninvest Tbk
The main advantage of trading using opposite Astra International and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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