Correlation Between PT Astra and Knightswan Acquisition
Can any of the company-specific risk be diversified away by investing in both PT Astra and Knightswan Acquisition 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 Knightswan Acquisition 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 Knightswan Acquisition Corp, you can compare the effects of market volatilities on PT Astra and Knightswan Acquisition 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 Knightswan Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Knightswan Acquisition.
Diversification Opportunities for PT Astra and Knightswan Acquisition
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTAIF and Knightswan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Knightswan Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightswan Acquisition 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 Knightswan Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightswan Acquisition has no effect on the direction of PT Astra i.e., PT Astra and Knightswan Acquisition go up and down completely randomly.
Pair Corralation between PT Astra and Knightswan Acquisition
If you would invest 1,038 in Knightswan Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Knightswan Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Astra International vs. Knightswan Acquisition Corp
Performance |
| Timeline |
| PT Astra International |
| Knightswan Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Knightswan Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Knightswan Acquisition
The main advantage of trading using opposite PT Astra and Knightswan Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Knightswan Acquisition 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 Knightswan Acquisition will offset losses from the drop in Knightswan Acquisition's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Knightswan Acquisition vs. Everest Consolidator Acquisition | Knightswan Acquisition vs. PowerUp Acquisition 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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