Correlation Between PT Astra and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both PT Astra and AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen, you can compare the effects of market volatilities on PT Astra and AmerisourceBergen 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 AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and AmerisourceBergen.
Diversification Opportunities for PT Astra and AmerisourceBergen
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASJA and AmerisourceBergen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen 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 AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of PT Astra i.e., PT Astra and AmerisourceBergen go up and down completely randomly.
Pair Corralation between PT Astra and AmerisourceBergen
Assuming the 90 days trading horizon PT Astra is expected to generate 10.79 times less return on investment than AmerisourceBergen. In addition to that, PT Astra is 3.34 times more volatile than AmerisourceBergen. It trades about 0.0 of its total potential returns per unit of risk. AmerisourceBergen is currently generating about 0.09 per unit of volatility. If you would invest 15,791 in AmerisourceBergen on August 31, 2024 and sell it today you would earn a total of 7,664 from holding AmerisourceBergen or generate 48.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
PT Astra International vs. AmerisourceBergen
Performance |
| Timeline |
| PT Astra International |
| AmerisourceBergen |
PT Astra and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and AmerisourceBergen
The main advantage of trading using opposite PT Astra and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen's long position.| PT Astra vs. Magna International | PT Astra vs. Fuyao Glass Industry | PT Astra vs. Superior Plus Corp | PT Astra vs. NMI Holdings |
| AmerisourceBergen vs. Cardinal Health | AmerisourceBergen vs. Henry Schein | AmerisourceBergen vs. Shanghai Pharmaceuticals Holding | AmerisourceBergen vs. Sinopharm Group Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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