Correlation Between Aspen Technology and PT Astra
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and PT Astra 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 Aspen Technology and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and PT Astra International, you can compare the effects of market volatilities on Aspen Technology and PT Astra 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 Aspen Technology with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and PT Astra.
Diversification Opportunities for Aspen Technology and PT Astra
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aspen and PTAIF is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and Aspen Technology 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 Aspen Technology are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of Aspen Technology i.e., Aspen Technology and PT Astra go up and down completely randomly.
Pair Corralation between Aspen Technology and PT Astra
Given the investment horizon of 90 days Aspen Technology is expected to generate 0.19 times more return on investment than PT Astra. However, Aspen Technology is 5.4 times less risky than PT Astra. It trades about 0.1 of its potential returns per unit of risk. PT Astra International is currently generating about -0.24 per unit of risk. If you would invest 24,956 in Aspen Technology on October 24, 2024 and sell it today you would earn a total of 196.00 from holding Aspen Technology or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspen Technology vs. PT Astra International
Performance |
| Timeline |
| Aspen Technology |
| PT Astra International |
Aspen Technology and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Technology and PT Astra
The main advantage of trading using opposite Aspen Technology and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, PT Astra 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 PT Astra will offset losses from the drop in PT Astra's long position.| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
| PT Astra vs. BLOCK INC | PT Astra vs. Commander Resources | PT Astra vs. PetMed Express | PT Astra vs. Aspen Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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