Correlation Between PT Astra and 888 Holdings
Can any of the company-specific risk be diversified away by investing in both PT Astra and 888 Holdings 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 888 Holdings 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 888 Holdings, you can compare the effects of market volatilities on PT Astra and 888 Holdings 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 888 Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and 888 Holdings.
Diversification Opportunities for PT Astra and 888 Holdings
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and 888 is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and 888 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 888 Holdings 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 888 Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 888 Holdings has no effect on the direction of PT Astra i.e., PT Astra and 888 Holdings go up and down completely randomly.
Pair Corralation between PT Astra and 888 Holdings
Assuming the 90 days horizon PT Astra International is expected to generate 0.53 times more return on investment than 888 Holdings. However, PT Astra International is 1.9 times less risky than 888 Holdings. It trades about 0.17 of its potential returns per unit of risk. 888 Holdings is currently generating about -0.04 per unit of risk. If you would invest 25.00 in PT Astra International on August 28, 2024 and sell it today you would earn a total of 12.00 from holding PT Astra International or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. 888 Holdings
Performance |
| Timeline |
| PT Astra International |
| 888 Holdings |
PT Astra and 888 Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and 888 Holdings
The main advantage of trading using opposite PT Astra and 888 Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, 888 Holdings 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 888 Holdings will offset losses from the drop in 888 Holdings' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| 888 Holdings vs. Entain Plc | 888 Holdings vs. PointsBet Holdings Limited | 888 Holdings vs. Kambi Group plc | 888 Holdings vs. Entain DRC PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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