Correlation Between PT Astra and Ladybug Resource
Can any of the company-specific risk be diversified away by investing in both PT Astra and Ladybug Resource 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 Ladybug Resource 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 Ladybug Resource Group, you can compare the effects of market volatilities on PT Astra and Ladybug Resource 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 Ladybug Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Ladybug Resource.
Diversification Opportunities for PT Astra and Ladybug Resource
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and Ladybug is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Ladybug Resource Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladybug Resource 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 Ladybug Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladybug Resource has no effect on the direction of PT Astra i.e., PT Astra and Ladybug Resource go up and down completely randomly.
Pair Corralation between PT Astra and Ladybug Resource
Assuming the 90 days horizon PT Astra International is expected to generate 0.14 times more return on investment than Ladybug Resource. However, PT Astra International is 7.08 times less risky than Ladybug Resource. It trades about 0.17 of its potential returns per unit of risk. Ladybug Resource Group is currently generating about 0.02 per unit of risk. If you would invest 25.00 in PT Astra International on September 1, 2024 and sell it today you would earn a total of 12.00 from holding PT Astra International or generate 48.0% 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. Ladybug Resource Group
Performance |
| Timeline |
| PT Astra International |
| Ladybug Resource |
PT Astra and Ladybug Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Ladybug Resource
The main advantage of trading using opposite PT Astra and Ladybug Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Ladybug Resource 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 Ladybug Resource will offset losses from the drop in Ladybug Resource's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Ladybug Resource vs. Altria Group | Ladybug Resource vs. British American Tobacco | Ladybug Resource vs. Universal | Ladybug Resource vs. Imperial Brands PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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