Correlation Between PT Astra and Gamehost
Can any of the company-specific risk be diversified away by investing in both PT Astra and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on PT Astra and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Gamehost.
Diversification Opportunities for PT Astra and Gamehost
Very good diversification
The 3 months correlation between PTAIF and Gamehost is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of PT Astra i.e., PT Astra and Gamehost go up and down completely randomly.
Pair Corralation between PT Astra and Gamehost
Assuming the 90 days horizon PT Astra is expected to generate 1.54 times less return on investment than Gamehost. In addition to that, PT Astra is 1.15 times more volatile than Gamehost. It trades about 0.03 of its total potential returns per unit of risk. Gamehost is currently generating about 0.05 per unit of volatility. If you would invest 684.00 in Gamehost on November 9, 2024 and sell it today you would earn a total of 49.00 from holding Gamehost or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.26% |
| Values | Daily Returns |
PT Astra International vs. Gamehost
Performance |
| Timeline |
| PT Astra International |
| Gamehost |
PT Astra and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Gamehost
The main advantage of trading using opposite PT Astra and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Gamehost vs. MagnaChip Semiconductor | Gamehost vs. Tower Semiconductor | Gamehost vs. BW Offshore Limited | Gamehost vs. Qorvo Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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