Correlation Between PT Astra and CEMEX SAB
Can any of the company-specific risk be diversified away by investing in both PT Astra and CEMEX SAB 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 CEMEX SAB 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 CEMEX SAB de, you can compare the effects of market volatilities on PT Astra and CEMEX SAB 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 CEMEX SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and CEMEX SAB.
Diversification Opportunities for PT Astra and CEMEX SAB
Very good diversification
The 3 months correlation between PTAIF and CEMEX is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and CEMEX SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMEX SAB de 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 CEMEX SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMEX SAB de has no effect on the direction of PT Astra i.e., PT Astra and CEMEX SAB go up and down completely randomly.
Pair Corralation between PT Astra and CEMEX SAB
If you would invest 37.00 in PT Astra International on August 31, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. CEMEX SAB de
Performance |
| Timeline |
| PT Astra International |
| CEMEX SAB de |
PT Astra and CEMEX SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and CEMEX SAB
The main advantage of trading using opposite PT Astra and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, CEMEX SAB 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 CEMEX SAB will offset losses from the drop in CEMEX SAB's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| CEMEX SAB vs. Vulcan Materials | CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Eagle Materials | CEMEX SAB vs. CRH PLC ADR |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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