Correlation Between PT Astra and Great Elm
Can any of the company-specific risk be diversified away by investing in both PT Astra and Great Elm 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 Great Elm 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 Great Elm Capital, you can compare the effects of market volatilities on PT Astra and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Great Elm.
Diversification Opportunities for PT Astra and Great Elm
Poor diversification
The 3 months correlation between PTAIF and Great is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of PT Astra i.e., PT Astra and Great Elm go up and down completely randomly.
Pair Corralation between PT Astra and Great Elm
Assuming the 90 days horizon PT Astra International is expected to generate 6.42 times more return on investment than Great Elm. However, PT Astra is 6.42 times more volatile than Great Elm Capital. It trades about 0.08 of its potential returns per unit of risk. Great Elm Capital is currently generating about 0.06 per unit of risk. If you would invest 28.00 in PT Astra International on September 1, 2024 and sell it today you would earn a total of 9.00 from holding PT Astra International or generate 32.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.34% |
| Values | Daily Returns |
PT Astra International vs. Great Elm Capital
Performance |
| Timeline |
| PT Astra International |
| Great Elm Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
PT Astra and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Great Elm
The main advantage of trading using opposite PT Astra and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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