Correlation Between PT Astra and Eisai
Can any of the company-specific risk be diversified away by investing in both PT Astra and Eisai 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 Eisai 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 Eisai Co, you can compare the effects of market volatilities on PT Astra and Eisai 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 Eisai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Eisai.
Diversification Opportunities for PT Astra and Eisai
Pay attention - limited upside
The 3 months correlation between PTAIF and Eisai is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Eisai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eisai 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 Eisai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eisai has no effect on the direction of PT Astra i.e., PT Astra and Eisai go up and down completely randomly.
Pair Corralation between PT Astra and Eisai
If you would invest 37.00 in PT Astra International on August 27, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Eisai Co
Performance |
| Timeline |
| PT Astra International |
| Eisai |
PT Astra and Eisai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Eisai
The main advantage of trading using opposite PT Astra and Eisai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Eisai 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 Eisai will offset losses from the drop in Eisai's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Eisai vs. JBG SMITH Properties | Eisai vs. Mid Atlantic Home Health | Eisai vs. Live Ventures | Eisai vs. Haverty Furniture Companies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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