Correlation Between PT Astra and LF Capital
Can any of the company-specific risk be diversified away by investing in both PT Astra and LF Capital 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 LF Capital 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 LF Capital Acquisition, you can compare the effects of market volatilities on PT Astra and LF Capital 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 LF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and LF Capital.
Diversification Opportunities for PT Astra and LF Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and LFAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and LF Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LF Capital 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 LF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LF Capital Acquisition has no effect on the direction of PT Astra i.e., PT Astra and LF Capital go up and down completely randomly.
Pair Corralation between PT Astra and LF Capital
If you would invest (100.00) in LF Capital Acquisition on November 27, 2024 and sell it today you would earn a total of 100.00 from holding LF Capital Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PT Astra International vs. LF Capital Acquisition
Performance |
| Timeline |
| PT Astra International |
| LF Capital Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Astra and LF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and LF Capital
The main advantage of trading using opposite PT Astra and LF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, LF Capital 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 LF Capital will offset losses from the drop in LF Capital's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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