Correlation Between Probility Media and PT Astra

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Can any of the company-specific risk be diversified away by investing in both Probility Media 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 Probility Media and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Probility Media Corp and PT Astra International, you can compare the effects of market volatilities on Probility Media 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 Probility Media with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Probility Media and PT Astra.

Diversification Opportunities for Probility Media and PT Astra

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Probility and ASII is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Probility Media Corp 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 Probility Media 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 Probility Media Corp 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 Probility Media i.e., Probility Media and PT Astra go up and down completely randomly.

Pair Corralation between Probility Media and PT Astra

Given the investment horizon of 90 days Probility Media Corp is expected to generate 13.41 times more return on investment than PT Astra. However, Probility Media is 13.41 times more volatile than PT Astra International. It trades about 0.34 of its potential returns per unit of risk. PT Astra International is currently generating about 0.1 per unit of risk. If you would invest  0.01  in Probility Media Corp on September 30, 2025 and sell it today you would earn a total of  0.00  from holding Probility Media Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Probility Media Corp  vs.  PT Astra International

 Performance 
       Timeline  
Probility Media Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Probility Media Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Probility Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
PT Astra International 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, PT Astra demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Probility Media and PT Astra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Probility Media and PT Astra

The main advantage of trading using opposite Probility Media and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Probility Media 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.
The idea behind Probility Media Corp and PT Astra International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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