Correlation Between Royal Prima and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Royal Prima and Astra Graphia 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 Royal Prima and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Prima PT and Astra Graphia Tbk, you can compare the effects of market volatilities on Royal Prima and Astra Graphia 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 Royal Prima with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Prima and Astra Graphia.
Diversification Opportunities for Royal Prima and Astra Graphia
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Royal and Astra is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Royal Prima PT and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Royal Prima 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 Royal Prima PT are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Royal Prima i.e., Royal Prima and Astra Graphia go up and down completely randomly.
Pair Corralation between Royal Prima and Astra Graphia
Assuming the 90 days trading horizon Royal Prima PT is expected to under-perform the Astra Graphia. In addition to that, Royal Prima is 3.02 times more volatile than Astra Graphia Tbk. It trades about 0.0 of its total potential returns per unit of risk. Astra Graphia Tbk is currently generating about 0.12 per unit of volatility. If you would invest 73,362 in Astra Graphia Tbk on August 28, 2024 and sell it today you would earn a total of 12,638 from holding Astra Graphia Tbk or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Royal Prima PT vs. Astra Graphia Tbk
Performance |
| Timeline |
| Royal Prima PT |
| Astra Graphia Tbk |
Royal Prima and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Prima and Astra Graphia
The main advantage of trading using opposite Royal Prima and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Prima position performs unexpectedly, Astra Graphia 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 Graphia will offset losses from the drop in Astra Graphia's long position.| Royal Prima vs. Astra Graphia Tbk | Royal Prima vs. Hexindo Adiperkasa Tbk | Royal Prima vs. Lautan Luas Tbk | Royal Prima vs. Citra Marga Nusaphala |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |