Correlation Between PT Astra and China Resources
Can any of the company-specific risk be diversified away by investing in both PT Astra and China Resources 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 China Resources 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 China Resources Beer, you can compare the effects of market volatilities on PT Astra and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and China Resources.
Diversification Opportunities for PT Astra and China Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and China Resources Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Beer 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Beer has no effect on the direction of PT Astra i.e., PT Astra and China Resources go up and down completely randomly.
Pair Corralation between PT Astra and China Resources
If you would invest 261.00 in China Resources Beer on September 2, 2024 and sell it today you would earn a total of 0.00 from holding China Resources Beer or generate 0.0% 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. China Resources Beer
Performance |
| Timeline |
| PT Astra International |
| China Resources Beer |
PT Astra and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and China Resources
The main advantage of trading using opposite PT Astra and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| China Resources vs. Tsingtao Brewery Co | China Resources vs. Budweiser Brewing | China Resources vs. Boston Beer | China Resources vs. Anheuser Busch Inbev |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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