Correlation Between PT Astra and Ipsos SA
Can any of the company-specific risk be diversified away by investing in both PT Astra and Ipsos SA 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 Ipsos SA 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 Ipsos SA, you can compare the effects of market volatilities on PT Astra and Ipsos SA 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 Ipsos SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Ipsos SA.
Diversification Opportunities for PT Astra and Ipsos SA
Pay attention - limited upside
The 3 months correlation between PTAIF and Ipsos is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Ipsos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsos SA 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 Ipsos SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsos SA has no effect on the direction of PT Astra i.e., PT Astra and Ipsos SA go up and down completely randomly.
Pair Corralation between PT Astra and Ipsos SA
Assuming the 90 days horizon PT Astra International is expected to generate 7.84 times more return on investment than Ipsos SA. However, PT Astra is 7.84 times more volatile than Ipsos SA. It trades about 0.03 of its potential returns per unit of risk. Ipsos SA is currently generating about 0.03 per unit of risk. If you would invest 40.00 in PT Astra International on August 27, 2024 and sell it today you would lose (3.00) from holding PT Astra International or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.71% |
| Values | Daily Returns |
PT Astra International vs. Ipsos SA
Performance |
| Timeline |
| PT Astra International |
| Ipsos SA |
PT Astra and Ipsos SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Ipsos SA
The main advantage of trading using opposite PT Astra and Ipsos SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Ipsos SA 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 Ipsos SA will offset losses from the drop in Ipsos SA's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Ipsos SA vs. Western Acquisition Ventures | Ipsos SA vs. Independence Realty Trust | Ipsos SA vs. Ambev SA ADR | Ipsos SA vs. Artisan Partners Asset |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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