Correlation Between PT Astra and Luminar Technologies
Can any of the company-specific risk be diversified away by investing in both PT Astra and Luminar Technologies 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 Luminar Technologies 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 Luminar Technologies, you can compare the effects of market volatilities on PT Astra and Luminar Technologies 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 Luminar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Luminar Technologies.
Diversification Opportunities for PT Astra and Luminar Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and Luminar is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Luminar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luminar Technologies 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 Luminar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luminar Technologies has no effect on the direction of PT Astra i.e., PT Astra and Luminar Technologies go up and down completely randomly.
Pair Corralation between PT Astra and Luminar Technologies
If you would invest 37.00 in PT Astra International on September 2, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Luminar Technologies
Performance |
| Timeline |
| PT Astra International |
| Luminar Technologies |
PT Astra and Luminar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Luminar Technologies
The main advantage of trading using opposite PT Astra and Luminar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Luminar Technologies 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 Luminar Technologies will offset losses from the drop in Luminar Technologies' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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