Correlation Between PT Astra and BASE
Can any of the company-specific risk be diversified away by investing in both PT Astra and BASE 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 BASE 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 BASE Inc, you can compare the effects of market volatilities on PT Astra and BASE 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 BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and BASE.
Diversification Opportunities for PT Astra and BASE
Pay attention - limited upside
The 3 months correlation between PTAIF and BASE is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc 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 BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of PT Astra i.e., PT Astra and BASE go up and down completely randomly.
Pair Corralation between PT Astra and BASE
Assuming the 90 days horizon PT Astra International is expected to under-perform the BASE. In addition to that, PT Astra is 1.76 times more volatile than BASE Inc. It trades about -0.22 of its total potential returns per unit of risk. BASE Inc is currently generating about 0.12 per unit of volatility. If you would invest 193.00 in BASE Inc on October 20, 2024 and sell it today you would earn a total of 6.00 from holding BASE Inc or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PT Astra International vs. BASE Inc
Performance |
| Timeline |
| PT Astra International |
| BASE Inc |
PT Astra and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and BASE
The main advantage of trading using opposite PT Astra and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| BASE vs. CurrentC Power | BASE vs. Agent Information Software | BASE vs. Auddia Inc | BASE vs. Maxwell Resource |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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