Correlation Between PT Astra and Ceapro
Can any of the company-specific risk be diversified away by investing in both PT Astra and Ceapro 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 Ceapro 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 Ceapro Inc, you can compare the effects of market volatilities on PT Astra and Ceapro 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 Ceapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Ceapro.
Diversification Opportunities for PT Astra and Ceapro
Poor diversification
The 3 months correlation between PTAIF and Ceapro is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Ceapro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceapro 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 Ceapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceapro Inc has no effect on the direction of PT Astra i.e., PT Astra and Ceapro go up and down completely randomly.
Pair Corralation between PT Astra and Ceapro
Assuming the 90 days horizon PT Astra is expected to generate 37.4 times less return on investment than Ceapro. But when comparing it to its historical volatility, PT Astra International is 26.56 times less risky than Ceapro. It trades about 0.05 of its potential returns per unit of risk. Ceapro Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Ceapro Inc on September 2, 2024 and sell it today you would earn a total of 573.00 from holding Ceapro Inc or generate 2865.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.94% |
| Values | Daily Returns |
PT Astra International vs. Ceapro Inc
Performance |
| Timeline |
| PT Astra International |
| Ceapro Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Ceapro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Ceapro
The main advantage of trading using opposite PT Astra and Ceapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Ceapro 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 Ceapro will offset losses from the drop in Ceapro's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Ceapro vs. Biotron Limited | Ceapro vs. biOasis Technologies | Ceapro vs. Covalon Technologies | Ceapro vs. Mosaic Immunoengineering |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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