Correlation Between Ekadharma International and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Ekadharma International and Astra Graphia 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 Ekadharma International and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekadharma International Tbk and Astra Graphia Tbk, you can compare the effects of market volatilities on Ekadharma International and Astra Graphia 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 Ekadharma International with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekadharma International and Astra Graphia.
Diversification Opportunities for Ekadharma International and Astra Graphia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ekadharma and Astra is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ekadharma International Tbk and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Ekadharma International 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 Ekadharma International Tbk are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Ekadharma International i.e., Ekadharma International and Astra Graphia go up and down completely randomly.
Pair Corralation between Ekadharma International and Astra Graphia
Assuming the 90 days trading horizon Ekadharma International Tbk is expected to under-perform the Astra Graphia. But the stock apears to be less risky and, when comparing its historical volatility, Ekadharma International Tbk is 1.22 times less risky than Astra Graphia. The stock trades about -0.04 of its potential returns per unit of risk. The Astra Graphia Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 85,785 in Astra Graphia Tbk on November 27, 2024 and sell it today you would lose (1,285) from holding Astra Graphia Tbk or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekadharma International Tbk vs. Astra Graphia Tbk
Performance |
| Timeline |
| Ekadharma International |
| Astra Graphia Tbk |
Ekadharma International and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekadharma International and Astra Graphia
The main advantage of trading using opposite Ekadharma International and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekadharma International position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia's long position.| Ekadharma International vs. Ultra Jaya Milk | Ekadharma International vs. Colorpak Indonesia Tbk | Ekadharma International vs. Champion Pacific Indonesia | Ekadharma International vs. Duta Pertiwi Nusantara |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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