Correlation Between Harum Energy and Astra Otoparts
Can any of the company-specific risk be diversified away by investing in both Harum Energy and Astra Otoparts 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 Harum Energy and Astra Otoparts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harum Energy Tbk and Astra Otoparts Tbk, you can compare the effects of market volatilities on Harum Energy and Astra Otoparts 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 Harum Energy with a short position of Astra Otoparts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harum Energy and Astra Otoparts.
Diversification Opportunities for Harum Energy and Astra Otoparts
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harum and Astra is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harum Energy Tbk and Astra Otoparts Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Otoparts Tbk and Harum Energy 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 Harum Energy Tbk are associated (or correlated) with Astra Otoparts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Otoparts Tbk has no effect on the direction of Harum Energy i.e., Harum Energy and Astra Otoparts go up and down completely randomly.
Pair Corralation between Harum Energy and Astra Otoparts
Assuming the 90 days trading horizon Harum Energy Tbk is expected to under-perform the Astra Otoparts. In addition to that, Harum Energy is 1.28 times more volatile than Astra Otoparts Tbk. It trades about -0.01 of its total potential returns per unit of risk. Astra Otoparts Tbk is currently generating about 0.01 per unit of volatility. If you would invest 229,394 in Astra Otoparts Tbk on September 2, 2024 and sell it today you would earn a total of 1,606 from holding Astra Otoparts Tbk or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harum Energy Tbk vs. Astra Otoparts Tbk
Performance |
| Timeline |
| Harum Energy Tbk |
| Astra Otoparts Tbk |
Harum Energy and Astra Otoparts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harum Energy and Astra Otoparts
The main advantage of trading using opposite Harum Energy and Astra Otoparts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harum Energy position performs unexpectedly, Astra Otoparts 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 Otoparts will offset losses from the drop in Astra Otoparts' long position.| Harum Energy vs. Mitrabahtera Segara Sejati | Harum Energy vs. Weha Transportasi Indonesia | Harum Energy vs. Rig Tenders Tbk |
| Astra Otoparts vs. Japfa Comfeed Indonesia | Astra Otoparts vs. Charoen Pokphand Indonesia | Astra Otoparts vs. Erajaya Swasembada Tbk | Astra Otoparts vs. Indofood Cbp Sukses |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |