Correlation Between PT Astra and Alkame Holdings
Can any of the company-specific risk be diversified away by investing in both PT Astra and Alkame Holdings 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 PT Astra and Alkame Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Astra International and Alkame Holdings, you can compare the effects of market volatilities on PT Astra and Alkame Holdings 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 PT Astra with a short position of Alkame Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Alkame Holdings.
Diversification Opportunities for PT Astra and Alkame Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASII and Alkame is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Alkame Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkame Holdings and PT Astra 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 PT Astra International are associated (or correlated) with Alkame Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkame Holdings has no effect on the direction of PT Astra i.e., PT Astra and Alkame Holdings go up and down completely randomly.
Pair Corralation between PT Astra and Alkame Holdings
Given the investment horizon of 90 days PT Astra International is expected to generate 1.15 times more return on investment than Alkame Holdings. However, PT Astra is 1.15 times more volatile than Alkame Holdings. It trades about 0.09 of its potential returns per unit of risk. Alkame Holdings is currently generating about 0.08 per unit of risk. If you would invest 0.10 in PT Astra International on October 21, 2024 and sell it today you would lose (0.05) from holding PT Astra International or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PT Astra International vs. Alkame Holdings
Performance |
| Timeline |
| PT Astra International |
| Alkame Holdings |
PT Astra and Alkame Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Alkame Holdings
The main advantage of trading using opposite PT Astra and Alkame Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Alkame Holdings 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 Alkame Holdings will offset losses from the drop in Alkame Holdings' long position.| PT Astra vs. Embotelladora Andina SA | PT Astra vs. Embotelladora Andina SA | PT Astra vs. Apple Rush | PT Astra vs. Alkame Holdings |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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