Correlation Between PT Astra and Appgate
Can any of the company-specific risk be diversified away by investing in both PT Astra and Appgate 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 Appgate 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 Appgate, you can compare the effects of market volatilities on PT Astra and Appgate 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 Appgate. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Appgate.
Diversification Opportunities for PT Astra and Appgate
Pay attention - limited upside
The 3 months correlation between PTAIF and Appgate is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate 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 Appgate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appgate has no effect on the direction of PT Astra i.e., PT Astra and Appgate go up and down completely randomly.
Pair Corralation between PT Astra and Appgate
Assuming the 90 days horizon PT Astra is expected to generate 2.29 times less return on investment than Appgate. But when comparing it to its historical volatility, PT Astra International is 2.39 times less risky than Appgate. It trades about 0.03 of its potential returns per unit of risk. Appgate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Appgate on August 25, 2024 and sell it today you would lose (318.00) from holding Appgate or give up 96.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 80.05% |
| Values | Daily Returns |
PT Astra International vs. Appgate
Performance |
| Timeline |
| PT Astra International |
| Appgate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Appgate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Appgate
The main advantage of trading using opposite PT Astra and Appgate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Appgate 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 Appgate will offset losses from the drop in Appgate's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Appgate vs. Tingo Inc | Appgate vs. Palo Alto Networks | Appgate vs. Palantir Technologies | Appgate vs. Arax Holdings Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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