Correlation Between PT Astra and Liberty Broadband
Can any of the company-specific risk be diversified away by investing in both PT Astra and Liberty Broadband 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 Liberty Broadband 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 Liberty Broadband, you can compare the effects of market volatilities on PT Astra and Liberty Broadband 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 Liberty Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Liberty Broadband.
Diversification Opportunities for PT Astra and Liberty Broadband
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTAIF and Liberty is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Liberty Broadband in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband 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 Liberty Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Broadband has no effect on the direction of PT Astra i.e., PT Astra and Liberty Broadband go up and down completely randomly.
Pair Corralation between PT Astra and Liberty Broadband
If you would invest 37.00 in PT Astra International on September 19, 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Liberty Broadband
Performance |
| Timeline |
| PT Astra International |
| Liberty Broadband |
PT Astra and Liberty Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Liberty Broadband
The main advantage of trading using opposite PT Astra and Liberty Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Liberty Broadband 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 Liberty Broadband will offset losses from the drop in Liberty Broadband's long position.| PT Astra vs. Astra International Tbk | PT Astra vs. Mobileye Global Class | PT Astra vs. HUMANA INC | PT Astra vs. Barloworld Ltd ADR |
| Liberty Broadband vs. Boston Beer | Liberty Broadband vs. Willamette Valley Vineyards | Liberty Broadband vs. Sphere Entertainment Co | Liberty Broadband vs. Pinterest |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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