Correlation Between PT Astra and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both PT Astra and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on PT Astra and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Apollo Investment.
Diversification Opportunities for PT Astra and Apollo Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASJA and Apollo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of PT Astra i.e., PT Astra and Apollo Investment go up and down completely randomly.
Pair Corralation between PT Astra and Apollo Investment
Assuming the 90 days trading horizon PT Astra International is expected to under-perform the Apollo Investment. In addition to that, PT Astra is 6.49 times more volatile than Apollo Investment Corp. It trades about -0.04 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.41 per unit of volatility. If you would invest 1,298 in Apollo Investment Corp on November 22, 2024 and sell it today you would earn a total of 98.00 from holding Apollo Investment Corp or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Apollo Investment Corp
Performance |
| Timeline |
| PT Astra International |
| Apollo Investment Corp |
PT Astra and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Apollo Investment
The main advantage of trading using opposite PT Astra and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| PT Astra vs. American Airlines Group | PT Astra vs. BE Semiconductor Industries | PT Astra vs. China Eastern Airlines | PT Astra vs. JAPAN AIRLINES |
| Apollo Investment vs. Jacquet Metal Service | Apollo Investment vs. American Eagle Outfitters | Apollo Investment vs. GOLDQUEST MINING | Apollo Investment vs. CORNISH METALS INC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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