Correlation Between PT Astra and EF Hutton
Can any of the company-specific risk be diversified away by investing in both PT Astra and EF Hutton 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 EF Hutton 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 EF Hutton Acquisition, you can compare the effects of market volatilities on PT Astra and EF Hutton 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 EF Hutton. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and EF Hutton.
Diversification Opportunities for PT Astra and EF Hutton
Poor diversification
The 3 months correlation between PTAIF and EFHT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and EF Hutton Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EF Hutton Acquisition 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 EF Hutton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EF Hutton Acquisition has no effect on the direction of PT Astra i.e., PT Astra and EF Hutton go up and down completely randomly.
Pair Corralation between PT Astra and EF Hutton
If you would invest 1,039 in EF Hutton Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding EF Hutton Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Astra International vs. EF Hutton Acquisition
Performance |
| Timeline |
| PT Astra International |
| EF Hutton Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and EF Hutton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and EF Hutton
The main advantage of trading using opposite PT Astra and EF Hutton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, EF Hutton 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 EF Hutton will offset losses from the drop in EF Hutton's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| EF Hutton vs. CF Acquisition VII | EF Hutton vs. Healthcare AI Acquisition | EF Hutton vs. Metal Sky Star | EF Hutton vs. Target Global Acquisition |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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