Correlation Between Pembangunan Graha and Astra International
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha 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 Pembangunan Graha and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Graha Lestari and Astra International Tbk, you can compare the effects of market volatilities on Pembangunan Graha 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 Pembangunan Graha with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Astra International.
Diversification Opportunities for Pembangunan Graha and Astra International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pembangunan and Astra is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari 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 Pembangunan Graha 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 Pembangunan Graha Lestari 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 Pembangunan Graha i.e., Pembangunan Graha and Astra International go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Astra International
Assuming the 90 days trading horizon Pembangunan Graha is expected to generate 5.68 times less return on investment than Astra International. In addition to that, Pembangunan Graha is 1.58 times more volatile than Astra International Tbk. It trades about 0.01 of its total potential returns per unit of risk. Astra International Tbk is currently generating about 0.13 per unit of volatility. If you would invest 497,000 in Astra International Tbk on September 12, 2024 and sell it today you would earn a total of 23,000 from holding Astra International Tbk or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Astra International Tbk
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Astra International Tbk |
Pembangunan Graha and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Astra International
The main advantage of trading using opposite Pembangunan Graha and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha 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.| Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Hotel Sahid Jaya | Pembangunan Graha vs. Mitrabara Adiperdana PT | Pembangunan Graha vs. PT Multi Garam |
| Astra International vs. Pembangunan Graha Lestari | Astra International vs. Pembangunan Jaya Ancol | Astra International vs. Hotel Sahid Jaya | Astra International vs. Mitrabara Adiperdana PT |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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