Correlation Between PT Astra and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both PT Astra and Banpu PCL 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 Banpu PCL 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 Banpu PCL ADR, you can compare the effects of market volatilities on PT Astra and Banpu PCL 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 Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Banpu PCL.
Diversification Opportunities for PT Astra and Banpu PCL
Pay attention - limited upside
The 3 months correlation between PTAIF and Banpu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR 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 Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of PT Astra i.e., PT Astra and Banpu PCL go up and down completely randomly.
Pair Corralation between PT Astra and Banpu PCL
If you would invest 29.00 in PT Astra International on August 31, 2024 and sell it today you would earn a total of 8.00 from holding PT Astra International or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 9.52% |
| Values | Daily Returns |
PT Astra International vs. Banpu PCL ADR
Performance |
| Timeline |
| PT Astra International |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Banpu PCL
The main advantage of trading using opposite PT Astra and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Banpu PCL vs. TFI International | Banpu PCL vs. Maiden Holdings | Banpu PCL vs. Employers Holdings | Banpu PCL vs. Tencent Music Entertainment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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