Correlation Between PT Astra and SRI TRANG
Can any of the company-specific risk be diversified away by investing in both PT Astra and SRI TRANG 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 SRI TRANG 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 SRI TRANG AGR FOR , you can compare the effects of market volatilities on PT Astra and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and SRI TRANG.
Diversification Opportunities for PT Astra and SRI TRANG
Modest diversification
The 3 months correlation between ASJA and SRI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and SRI TRANG AGR FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG AGR 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG AGR has no effect on the direction of PT Astra i.e., PT Astra and SRI TRANG go up and down completely randomly.
Pair Corralation between PT Astra and SRI TRANG
Assuming the 90 days trading horizon PT Astra is expected to generate 1.13 times less return on investment than SRI TRANG. But when comparing it to its historical volatility, PT Astra International is 1.07 times less risky than SRI TRANG. It trades about 0.02 of its potential returns per unit of risk. SRI TRANG AGR FOR is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 47.00 in SRI TRANG AGR FOR on September 12, 2024 and sell it today you would earn a total of 0.00 from holding SRI TRANG AGR FOR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
PT Astra International vs. SRI TRANG AGR FOR
Performance |
| Timeline |
| PT Astra International |
| SRI TRANG AGR |
PT Astra and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and SRI TRANG
The main advantage of trading using opposite PT Astra and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG's long position.| PT Astra vs. Brockhaus Capital Management | PT Astra vs. ITALIAN WINE BRANDS | PT Astra vs. LANDSEA GREEN MANAGEMENT | PT Astra vs. Marie Brizard Wine |
| SRI TRANG vs. COLUMBIA SPORTSWEAR | SRI TRANG vs. ZINC MEDIA GR | SRI TRANG vs. Dave Busters Entertainment | SRI TRANG vs. PLAYTIKA HOLDING DL 01 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |