Correlation Between FAST RETAIL and PT Astra
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and PT Astra International, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and PT Astra.
Diversification Opportunities for FAST RETAIL and PT Astra
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FAST and ASJA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR 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 FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and PT Astra go up and down completely randomly.
Pair Corralation between FAST RETAIL and PT Astra
Assuming the 90 days trading horizon FAST RETAIL ADR is expected to generate 0.36 times more return on investment than PT Astra. However, FAST RETAIL ADR is 2.76 times less risky than PT Astra. It trades about -0.17 of its potential returns per unit of risk. PT Astra International is currently generating about -0.13 per unit of risk. If you would invest 3,300 in FAST RETAIL ADR on October 11, 2024 and sell it today you would lose (180.00) from holding FAST RETAIL ADR or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. PT Astra International
Performance |
| Timeline |
| FAST RETAIL ADR |
| PT Astra International |
FAST RETAIL and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and PT Astra
The main advantage of trading using opposite FAST RETAIL and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. BRAEMAR HOTELS RES | FAST RETAIL vs. Wyndham Hotels Resorts | FAST RETAIL vs. Xenia Hotels Resorts | FAST RETAIL vs. Nufarm Limited |
| PT Astra vs. COVIVIO HOTELS INH | PT Astra vs. EMPEROR ENT HOTEL | PT Astra vs. PPHE HOTEL GROUP | PT Astra vs. Aya Gold Silver |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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