Correlation Between PT Astra and Hybrid Kinetic
Can any of the company-specific risk be diversified away by investing in both PT Astra and Hybrid Kinetic 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 Hybrid Kinetic 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 Hybrid Kinetic Group, you can compare the effects of market volatilities on PT Astra and Hybrid Kinetic 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 Hybrid Kinetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Hybrid Kinetic.
Diversification Opportunities for PT Astra and Hybrid Kinetic
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and Hybrid is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Hybrid Kinetic Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hybrid Kinetic Group 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 Hybrid Kinetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hybrid Kinetic Group has no effect on the direction of PT Astra i.e., PT Astra and Hybrid Kinetic go up and down completely randomly.
Pair Corralation between PT Astra and Hybrid Kinetic
Assuming the 90 days horizon PT Astra is expected to generate 23.79 times less return on investment than Hybrid Kinetic. But when comparing it to its historical volatility, PT Astra International is 28.15 times less risky than Hybrid Kinetic. It trades about 0.08 of its potential returns per unit of risk. Hybrid Kinetic Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.17 in Hybrid Kinetic Group on September 3, 2024 and sell it today you would earn a total of 0.33 from holding Hybrid Kinetic Group or generate 194.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 89.76% |
| Values | Daily Returns |
PT Astra International vs. Hybrid Kinetic Group
Performance |
| Timeline |
| PT Astra International |
| Hybrid Kinetic Group |
PT Astra and Hybrid Kinetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Hybrid Kinetic
The main advantage of trading using opposite PT Astra and Hybrid Kinetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Hybrid Kinetic 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 Hybrid Kinetic will offset losses from the drop in Hybrid Kinetic's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Hybrid Kinetic vs. Northstar Clean Technologies | Hybrid Kinetic vs. Paysafe | Hybrid Kinetic vs. NetSol Technologies | Hybrid Kinetic vs. Capital Clean Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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