Correlation Between PT Astra and Naas Technology
Can any of the company-specific risk be diversified away by investing in both PT Astra and Naas Technology 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 Naas Technology 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 Naas Technology ADR, you can compare the effects of market volatilities on PT Astra and Naas Technology 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 Naas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Naas Technology.
Diversification Opportunities for PT Astra and Naas Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTAIF and Naas is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Naas Technology ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naas Technology ADR 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 Naas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naas Technology ADR has no effect on the direction of PT Astra i.e., PT Astra and Naas Technology go up and down completely randomly.
Pair Corralation between PT Astra and Naas Technology
Assuming the 90 days horizon PT Astra International is expected to generate 0.3 times more return on investment than Naas Technology. However, PT Astra International is 3.29 times less risky than Naas Technology. It trades about 0.02 of its potential returns per unit of risk. Naas Technology ADR is currently generating about -0.07 per unit of risk. If you would invest 30.00 in PT Astra International on November 3, 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 | 78.63% |
| Values | Daily Returns |
PT Astra International vs. Naas Technology ADR
Performance |
| Timeline |
| PT Astra International |
| Naas Technology ADR |
PT Astra and Naas Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Naas Technology
The main advantage of trading using opposite PT Astra and Naas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Naas Technology 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 Naas Technology will offset losses from the drop in Naas Technology's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Naas Technology vs. Leslies | Naas Technology vs. Sally Beauty Holdings | Naas Technology vs. ODP Corp | Naas Technology vs. 1 800 FLOWERSCOM |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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