Correlation Between PT Astra and Agilyx AS
Can any of the company-specific risk be diversified away by investing in both PT Astra and Agilyx AS 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 PT Astra and Agilyx AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Astra International and Agilyx AS, you can compare the effects of market volatilities on PT Astra and Agilyx AS 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 PT Astra with a short position of Agilyx AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Agilyx AS.
Diversification Opportunities for PT Astra and Agilyx AS
Poor diversification
The 3 months correlation between PTAIF and Agilyx is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Agilyx AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilyx AS and PT Astra 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 PT Astra International are associated (or correlated) with Agilyx AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilyx AS has no effect on the direction of PT Astra i.e., PT Astra and Agilyx AS go up and down completely randomly.
Pair Corralation between PT Astra and Agilyx AS
Assuming the 90 days horizon PT Astra International is expected to generate 1.51 times more return on investment than Agilyx AS. However, PT Astra is 1.51 times more volatile than Agilyx AS. It trades about 0.02 of its potential returns per unit of risk. Agilyx AS is currently generating about 0.02 per unit of risk. If you would invest 39.00 in PT Astra International on August 24, 2024 and sell it today you would lose (2.00) from holding PT Astra International or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.63% |
| Values | Daily Returns |
PT Astra International vs. Agilyx AS
Performance |
| Timeline |
| PT Astra International |
| Agilyx AS |
PT Astra and Agilyx AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Agilyx AS
The main advantage of trading using opposite PT Astra and Agilyx AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Agilyx AS 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 Agilyx AS will offset losses from the drop in Agilyx AS's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Agilyx AS vs. Embotelladora Andina SA | Agilyx AS vs. Signet International Holdings | Agilyx AS vs. National Beverage Corp | Agilyx AS vs. PT Astra International |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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