Correlation Between Mobileye Global and PT Astra
Can any of the company-specific risk be diversified away by investing in both Mobileye Global 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 Mobileye Global and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileye Global Class and PT Astra International, you can compare the effects of market volatilities on Mobileye Global 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 Mobileye Global with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and PT Astra.
Diversification Opportunities for Mobileye Global and PT Astra
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobileye and PTAIF is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class 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 Mobileye Global 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 Mobileye Global Class 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 Mobileye Global i.e., Mobileye Global and PT Astra go up and down completely randomly.
Pair Corralation between Mobileye Global and PT Astra
Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the PT Astra. In addition to that, Mobileye Global is 1.48 times more volatile than PT Astra International. It trades about -0.05 of its total potential returns per unit of risk. PT Astra International is currently generating about 0.05 per unit of volatility. If you would invest 31.00 in PT Astra International on September 14, 2024 and sell it today you would earn a total of 6.00 from holding PT Astra International or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.59% |
| Values | Daily Returns |
Mobileye Global Class vs. PT Astra International
Performance |
| Timeline |
| Mobileye Global Class |
| PT Astra International |
Mobileye Global and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileye Global and PT Astra
The main advantage of trading using opposite Mobileye Global and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global 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.| Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings Corp |
| PT Astra vs. Astra International Tbk | PT Astra vs. Mobileye Global Class | PT Astra vs. HUMANA INC | PT Astra vs. Barloworld Ltd ADR |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |