Correlation Between PT Astra and Canacol Energy
Can any of the company-specific risk be diversified away by investing in both PT Astra and Canacol Energy 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 Canacol Energy 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 Canacol Energy, you can compare the effects of market volatilities on PT Astra and Canacol Energy 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 Canacol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Canacol Energy.
Diversification Opportunities for PT Astra and Canacol Energy
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Canacol is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Canacol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canacol Energy 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 Canacol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canacol Energy has no effect on the direction of PT Astra i.e., PT Astra and Canacol Energy go up and down completely randomly.
Pair Corralation between PT Astra and Canacol Energy
If you would invest 205.00 in Canacol Energy on September 1, 2024 and sell it today you would earn a total of 66.00 from holding Canacol Energy or generate 32.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Astra International vs. Canacol Energy
Performance |
| Timeline |
| PT Astra International |
| Canacol Energy |
PT Astra and Canacol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Canacol Energy
The main advantage of trading using opposite PT Astra and Canacol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Canacol Energy 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 Canacol Energy will offset losses from the drop in Canacol Energy's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Canacol Energy vs. PetroShale | Canacol Energy vs. Inpex Corp ADR | Canacol Energy vs. Battalion Oil Corp | Canacol Energy vs. Condor Petroleum |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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