Correlation Between PT Astra and Fernhill Beverage
Can any of the company-specific risk be diversified away by investing in both PT Astra and Fernhill Beverage 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 Fernhill Beverage 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 Fernhill Beverage, you can compare the effects of market volatilities on PT Astra and Fernhill Beverage 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 Fernhill Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Fernhill Beverage.
Diversification Opportunities for PT Astra and Fernhill Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASII and Fernhill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Fernhill Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fernhill Beverage 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 Fernhill Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fernhill Beverage has no effect on the direction of PT Astra i.e., PT Astra and Fernhill Beverage go up and down completely randomly.
Pair Corralation between PT Astra and Fernhill Beverage
If you would invest 0.04 in PT Astra International on August 29, 2024 and sell it today you would earn a total of 0.01 from holding PT Astra International or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Fernhill Beverage
Performance |
| Timeline |
| PT Astra International |
| Fernhill Beverage |
PT Astra and Fernhill Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Fernhill Beverage
The main advantage of trading using opposite PT Astra and Fernhill Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Fernhill Beverage 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 Fernhill Beverage will offset losses from the drop in Fernhill Beverage's long position.| PT Astra vs. Embotelladora Andina SA | PT Astra vs. Embotelladora Andina SA | PT Astra vs. Apple Rush | PT Astra vs. Alkame Holdings |
| Fernhill Beverage vs. Embotelladora Andina SA | Fernhill Beverage vs. PT Astra International | Fernhill Beverage vs. Embotelladora Andina SA | Fernhill Beverage vs. Alkame Holdings |
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.
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