Correlation Between Marie Brizard and PT Astra
Can any of the company-specific risk be diversified away by investing in both Marie Brizard 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 Marie Brizard and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marie Brizard Wine and PT Astra International, you can compare the effects of market volatilities on Marie Brizard 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 Marie Brizard with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and PT Astra.
Diversification Opportunities for Marie Brizard and PT Astra
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marie and ASJA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine 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 Marie Brizard 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 Marie Brizard Wine 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 Marie Brizard i.e., Marie Brizard and PT Astra go up and down completely randomly.
Pair Corralation between Marie Brizard and PT Astra
Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the PT Astra. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 2.1 times less risky than PT Astra. The stock trades about -0.01 of its potential returns per unit of risk. The PT Astra International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 26.00 in PT Astra International on November 3, 2024 and sell it today you would earn a total of 4.00 from holding PT Astra International or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. PT Astra International
Performance |
| Timeline |
| Marie Brizard Wine |
| PT Astra International |
Marie Brizard and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and PT Astra
The main advantage of trading using opposite Marie Brizard and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard 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.| Marie Brizard vs. Eidesvik Offshore ASA | Marie Brizard vs. HELIOS TECHS INC | Marie Brizard vs. Solstad Offshore ASA | Marie Brizard vs. Bio Techne Corp |
| PT Astra vs. SEKISUI CHEMICAL | PT Astra vs. NORTHEAST UTILITIES | PT Astra vs. AAC TECHNOLOGHLDGADR | PT Astra vs. Shin Etsu Chemical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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