Correlation Between Brockhaus Capital and PT Astra
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and PT Astra International, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and PT Astra.
Diversification Opportunities for Brockhaus Capital and PT Astra
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Brockhaus and ASJA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management 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 Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and PT Astra go up and down completely randomly.
Pair Corralation between Brockhaus Capital and PT Astra
Assuming the 90 days trading horizon Brockhaus Capital is expected to generate 2.5 times less return on investment than PT Astra. But when comparing it to its historical volatility, Brockhaus Capital Management is 1.61 times less risky than PT Astra. It trades about 0.01 of its potential returns per unit of risk. PT Astra International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 33.00 in PT Astra International on September 12, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. PT Astra International
Performance |
| Timeline |
| Brockhaus Capital |
| PT Astra International |
Brockhaus Capital and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and PT Astra
The main advantage of trading using opposite Brockhaus Capital and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
| PT Astra vs. Brockhaus Capital Management | PT Astra vs. ITALIAN WINE BRANDS | PT Astra vs. LANDSEA GREEN MANAGEMENT | PT Astra vs. Marie Brizard Wine |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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