Correlation Between PT Astra and Orca Energy
Can any of the company-specific risk be diversified away by investing in both PT Astra and Orca Energy 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 Orca Energy 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 Orca Energy Group, you can compare the effects of market volatilities on PT Astra and Orca Energy 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 Orca Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Orca Energy.
Diversification Opportunities for PT Astra and Orca Energy
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTAIF and Orca is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Orca Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orca Energy Group 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 Orca Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orca Energy Group has no effect on the direction of PT Astra i.e., PT Astra and Orca Energy go up and down completely randomly.
Pair Corralation between PT Astra and Orca Energy
Assuming the 90 days horizon PT Astra International is expected to under-perform the Orca Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 1.28 times less risky than Orca Energy. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Orca Energy Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Orca Energy Group on November 27, 2024 and sell it today you would lose (2.00) from holding Orca Energy Group or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Orca Energy Group
Performance |
| Timeline |
| PT Astra International |
| Orca Energy Group |
PT Astra and Orca Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Orca Energy
The main advantage of trading using opposite PT Astra and Orca Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Orca Energy 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 Orca Energy will offset losses from the drop in Orca Energy's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Orca Energy vs. PetroShale | Orca Energy vs. Questerre Energy | Orca Energy vs. Petrus Resources | Orca Energy vs. Inpex Corp ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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