Correlation Between Perusahaan Perkebunan and Astra International
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perkebunan and Astra International 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 Perusahaan Perkebunan and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perkebunan London and Astra International Tbk, you can compare the effects of market volatilities on Perusahaan Perkebunan and Astra International 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 Perusahaan Perkebunan with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perkebunan and Astra International.
Diversification Opportunities for Perusahaan Perkebunan and Astra International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perusahaan and Astra is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perkebunan London and Astra International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra International Tbk and Perusahaan Perkebunan 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 Perusahaan Perkebunan London are associated (or correlated) with Astra International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra International Tbk has no effect on the direction of Perusahaan Perkebunan i.e., Perusahaan Perkebunan and Astra International go up and down completely randomly.
Pair Corralation between Perusahaan Perkebunan and Astra International
Assuming the 90 days trading horizon Perusahaan Perkebunan London is expected to under-perform the Astra International. In addition to that, Perusahaan Perkebunan is 2.53 times more volatile than Astra International Tbk. It trades about -0.27 of its total potential returns per unit of risk. Astra International Tbk is currently generating about -0.24 per unit of volatility. If you would invest 522,500 in Astra International Tbk on August 26, 2024 and sell it today you would lose (31,500) from holding Astra International Tbk or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perkebunan London vs. Astra International Tbk
Performance |
| Timeline |
| Perusahaan Perkebunan |
| Astra International Tbk |
Perusahaan Perkebunan and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perkebunan and Astra International
The main advantage of trading using opposite Perusahaan Perkebunan and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perkebunan position performs unexpectedly, Astra International 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 International will offset losses from the drop in Astra International's long position.| Perusahaan Perkebunan vs. Charoen Pokphand Indonesia | Perusahaan Perkebunan vs. Kalbe Farma Tbk | Perusahaan Perkebunan vs. Indofood Cbp Sukses | Perusahaan Perkebunan vs. Akr Corporindo Tbk |
| Astra International vs. Telkom Indonesia Tbk | Astra International vs. Bank Mandiri Persero | Astra International vs. Bank Central Asia | Astra International vs. PT Indofood 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |