Correlation Between PT Astra and FUNR
Can any of the company-specific risk be diversified away by investing in both PT Astra and FUNR 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 FUNR 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 FUNR, you can compare the effects of market volatilities on PT Astra and FUNR 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 FUNR. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and FUNR.
Diversification Opportunities for PT Astra and FUNR
Weak diversification
The 3 months correlation between PTAIF and FUNR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and FUNR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUNR 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 FUNR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUNR has no effect on the direction of PT Astra i.e., PT Astra and FUNR go up and down completely randomly.
Pair Corralation between PT Astra and FUNR
Assuming the 90 days horizon PT Astra International is expected to under-perform the FUNR. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 3.98 times less risky than FUNR. The pink sheet trades about -0.01 of its potential returns per unit of risk. The FUNR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.03 in FUNR on December 1, 2024 and sell it today you would earn a total of 0.00 from holding FUNR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Astra International vs. FUNR
Performance |
| Timeline |
| PT Astra International |
| FUNR |
PT Astra and FUNR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and FUNR
The main advantage of trading using opposite PT Astra and FUNR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, FUNR 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 FUNR will offset losses from the drop in FUNR's long position.| PT Astra vs. Luminar Technologies | PT Astra vs. Mobileye Global Class | PT Astra vs. Hyliion Holdings Corp | PT Astra vs. Aeva Technologies, Common |
| FUNR vs. Bowmo Inc | FUNR vs. Eco Innovation Group | FUNR vs. Profitable Develop | FUNR vs. Legends Business Grp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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