Correlation Between PT Astra and Augmedix

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Can any of the company-specific risk be diversified away by investing in both PT Astra and Augmedix 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 Augmedix 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 Augmedix, you can compare the effects of market volatilities on PT Astra and Augmedix 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 Augmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Augmedix.

Diversification Opportunities for PT Astra and Augmedix

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between PTAIF and Augmedix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix 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 Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of PT Astra i.e., PT Astra and Augmedix go up and down completely randomly.

Pair Corralation between PT Astra and Augmedix

If you would invest  235.00  in Augmedix on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Augmedix or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy4.76%
ValuesDaily Returns

PT Astra International  vs.  Augmedix

 Performance 
       Timeline  
PT Astra International 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward indicators, PT Astra reported solid returns over the last few months and may actually be approaching a breakup point.
Augmedix 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Solid
Over the last 90 days Augmedix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Augmedix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

PT Astra and Augmedix Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PT Astra and Augmedix

The main advantage of trading using opposite PT Astra and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.
The idea behind PT Astra International and Augmedix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

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