Correlation Between Network International and PT Astra
Can any of the company-specific risk be diversified away by investing in both Network International 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 Network International and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Network International Holdings and PT Astra International, you can compare the effects of market volatilities on Network International 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 Network International with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network International and PT Astra.
Diversification Opportunities for Network International and PT Astra
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Network and PTAIF is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Network International Holdings 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 Network 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 Network International Holdings 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 Network International i.e., Network International and PT Astra go up and down completely randomly.
Pair Corralation between Network International and PT Astra
If you would invest 37.00 in PT Astra International on August 27, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Network International Holdings vs. PT Astra International
Performance |
| Timeline |
| Network International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| PT Astra International |
Network International and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network International and PT Astra
The main advantage of trading using opposite Network International and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network International 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.| Network International vs. Cerberus Cyber Sentinel | Network International vs. Gorilla Technology Group | Network International vs. Taoping | Network International vs. Crowdstrike Holdings |
| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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