Correlation Between PT Astra and COSTAR GROUP
Can any of the company-specific risk be diversified away by investing in both PT Astra and COSTAR GROUP 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 COSTAR GROUP 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 COSTAR GROUP INC, you can compare the effects of market volatilities on PT Astra and COSTAR GROUP 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 COSTAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and COSTAR GROUP.
Diversification Opportunities for PT Astra and COSTAR GROUP
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASJA and COSTAR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and COSTAR GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTAR GROUP INC 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 COSTAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTAR GROUP INC has no effect on the direction of PT Astra i.e., PT Astra and COSTAR GROUP go up and down completely randomly.
Pair Corralation between PT Astra and COSTAR GROUP
Assuming the 90 days trading horizon PT Astra is expected to generate 1.23 times less return on investment than COSTAR GROUP. In addition to that, PT Astra is 2.22 times more volatile than COSTAR GROUP INC. It trades about 0.01 of its total potential returns per unit of risk. COSTAR GROUP INC is currently generating about 0.03 per unit of volatility. If you would invest 6,700 in COSTAR GROUP INC on August 29, 2024 and sell it today you would earn a total of 914.00 from holding COSTAR GROUP INC or generate 13.64% 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. COSTAR GROUP INC
Performance |
| Timeline |
| PT Astra International |
| COSTAR GROUP INC |
PT Astra and COSTAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and COSTAR GROUP
The main advantage of trading using opposite PT Astra and COSTAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, COSTAR GROUP 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 COSTAR GROUP will offset losses from the drop in COSTAR GROUP's long position.| PT Astra vs. Lion One Metals | PT Astra vs. UNITED RENTALS | PT Astra vs. PLAY2CHILL SA ZY | PT Astra vs. VIAPLAY GROUP AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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