Correlation Between PT Astra and Handeni Gold
Can any of the company-specific risk be diversified away by investing in both PT Astra and Handeni Gold 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 Handeni Gold 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 Handeni Gold, you can compare the effects of market volatilities on PT Astra and Handeni Gold 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 Handeni Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Handeni Gold.
Diversification Opportunities for PT Astra and Handeni Gold
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and Handeni is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Handeni Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handeni Gold 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 Handeni Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handeni Gold has no effect on the direction of PT Astra i.e., PT Astra and Handeni Gold go up and down completely randomly.
Pair Corralation between PT Astra and Handeni Gold
Assuming the 90 days horizon PT Astra International is expected to under-perform the Handeni Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 4.66 times less risky than Handeni Gold. The pink sheet trades about -0.31 of its potential returns per unit of risk. The Handeni Gold is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Handeni Gold on October 12, 2024 and sell it today you would earn a total of 0.01 from holding Handeni Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PT Astra International vs. Handeni Gold
Performance |
| Timeline |
| PT Astra International |
| Handeni Gold |
PT Astra and Handeni Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Handeni Gold
The main advantage of trading using opposite PT Astra and Handeni Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Handeni Gold 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 Handeni Gold will offset losses from the drop in Handeni Gold's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Handeni Gold vs. Minnova Corp | Handeni Gold vs. Angkor Resources Corp | Handeni Gold vs. Argo Gold | Handeni Gold vs. Advance Gold Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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