Correlation Between PT Astra and Network International
Can any of the company-specific risk be diversified away by investing in both PT Astra and Network International 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 Network International 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 Network International Holdings, you can compare the effects of market volatilities on PT Astra and Network International 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 Network International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Network International.
Diversification Opportunities for PT Astra and Network International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTAIF and Network is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Network International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network International 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 Network International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network International has no effect on the direction of PT Astra i.e., PT Astra and Network International go up and down completely randomly.
Pair Corralation between PT Astra and Network International
Assuming the 90 days horizon PT Astra International is expected to under-perform the Network International. In addition to that, PT Astra is 3.85 times more volatile than Network International Holdings. It trades about 0.0 of its total potential returns per unit of risk. Network International Holdings is currently generating about 0.03 per unit of volatility. If you would invest 469.00 in Network International Holdings on August 27, 2024 and sell it today you would earn a total of 51.00 from holding Network International Holdings or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 56.1% |
| Values | Daily Returns |
PT Astra International vs. Network International Holdings
Performance |
| Timeline |
| PT Astra International |
| Network International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
PT Astra and Network International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Network International
The main advantage of trading using opposite PT Astra and Network International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Network International 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 Network International will offset losses from the drop in Network International's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Network International vs. Cerberus Cyber Sentinel | Network International vs. Gorilla Technology Group | Network International vs. Taoping | Network International vs. Crowdstrike Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |