Correlation Between PT Astra and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both PT Astra and SANOK RUBBER 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 SANOK RUBBER 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 SANOK RUBBER ZY, you can compare the effects of market volatilities on PT Astra and SANOK RUBBER 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 SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and SANOK RUBBER.
Diversification Opportunities for PT Astra and SANOK RUBBER
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASJA and SANOK is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of PT Astra i.e., PT Astra and SANOK RUBBER go up and down completely randomly.
Pair Corralation between PT Astra and SANOK RUBBER
Assuming the 90 days trading horizon PT Astra International is expected to under-perform the SANOK RUBBER. In addition to that, PT Astra is 1.63 times more volatile than SANOK RUBBER ZY. It trades about 0.0 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.04 per unit of volatility. If you would invest 330.00 in SANOK RUBBER ZY on August 26, 2024 and sell it today you would earn a total of 104.00 from holding SANOK RUBBER ZY or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. SANOK RUBBER ZY
Performance |
| Timeline |
| PT Astra International |
| SANOK RUBBER ZY |
PT Astra and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and SANOK RUBBER
The main advantage of trading using opposite PT Astra and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| PT Astra vs. Fidelity National Information | PT Astra vs. DOCDATA | PT Astra vs. Transportadora de Gas | PT Astra vs. Liberty Broadband |
| SANOK RUBBER vs. PT Astra International | SANOK RUBBER vs. Superior Plus Corp | SANOK RUBBER vs. NMI Holdings | SANOK RUBBER vs. Origin Agritech |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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