Correlation Between PT Astra and AIXTRON SE
Can any of the company-specific risk be diversified away by investing in both PT Astra and AIXTRON SE 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 AIXTRON SE 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 AIXTRON SE, you can compare the effects of market volatilities on PT Astra and AIXTRON SE 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 AIXTRON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and AIXTRON SE.
Diversification Opportunities for PT Astra and AIXTRON SE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and AIXTRON is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and AIXTRON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIXTRON SE 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 AIXTRON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIXTRON SE has no effect on the direction of PT Astra i.e., PT Astra and AIXTRON SE go up and down completely randomly.
Pair Corralation between PT Astra and AIXTRON SE
If you would invest 37.00 in PT Astra International on August 28, 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. AIXTRON SE
Performance |
| Timeline |
| PT Astra International |
| AIXTRON SE |
PT Astra and AIXTRON SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and AIXTRON SE
The main advantage of trading using opposite PT Astra and AIXTRON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, AIXTRON SE 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 AIXTRON SE will offset losses from the drop in AIXTRON SE's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| AIXTRON SE vs. Sumco Corp ADR | AIXTRON SE vs. Disco Corp ADR | AIXTRON SE vs. Tokyo Electron | AIXTRON SE vs. Asm Pacific Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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