Correlation Between PT Astra and Hinto Energy
Can any of the company-specific risk be diversified away by investing in both PT Astra and Hinto Energy 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 Hinto Energy 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 Hinto Energy, you can compare the effects of market volatilities on PT Astra and Hinto Energy 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 Hinto Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Hinto Energy.
Diversification Opportunities for PT Astra and Hinto Energy
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTAIF and Hinto is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Hinto Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hinto Energy 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 Hinto Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hinto Energy has no effect on the direction of PT Astra i.e., PT Astra and Hinto Energy go up and down completely randomly.
Pair Corralation between PT Astra and Hinto Energy
Assuming the 90 days horizon PT Astra International is expected to generate 18.61 times more return on investment than Hinto Energy. However, PT Astra is 18.61 times more volatile than Hinto Energy. It trades about 0.06 of its potential returns per unit of risk. Hinto Energy is currently generating about -0.15 per unit of risk. If you would invest 27.00 in PT Astra International on November 30, 2024 and sell it today you would earn a total of 2.00 from holding PT Astra International or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
PT Astra International vs. Hinto Energy
Performance |
| Timeline |
| PT Astra International |
| Hinto Energy |
PT Astra and Hinto Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Hinto Energy
The main advantage of trading using opposite PT Astra and Hinto Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Hinto Energy 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 Hinto Energy will offset losses from the drop in Hinto Energy'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 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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