Correlation Between PT Astra and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both PT Astra and Mason Industrial 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 Mason Industrial 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 Mason Industrial Technology, you can compare the effects of market volatilities on PT Astra and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Mason Industrial.
Diversification Opportunities for PT Astra and Mason Industrial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Mason is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of PT Astra i.e., PT Astra and Mason Industrial go up and down completely randomly.
Pair Corralation between PT Astra and Mason Industrial
If you would invest 34.00 in PT Astra International on September 3, 2024 and sell it today you would earn a total of 3.00 from holding PT Astra International or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.63% |
| Values | Daily Returns |
PT Astra International vs. Mason Industrial Technology
Performance |
| Timeline |
| PT Astra International |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Mason Industrial
The main advantage of trading using opposite PT Astra and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Mason Industrial vs. Meli Hotels International | Mason Industrial vs. The Hanover Insurance | Mason Industrial vs. The Cheesecake Factory | Mason Industrial vs. The Wendys Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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