Correlation Between PT Astra and Perception Capital
Can any of the company-specific risk be diversified away by investing in both PT Astra and Perception 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 Perception 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 Perception Capital Corp, you can compare the effects of market volatilities on PT Astra and Perception 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 Perception Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Perception Capital.
Diversification Opportunities for PT Astra and Perception Capital
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTAIF and Perception is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Perception Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perception Capital Corp 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 Perception Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perception Capital Corp has no effect on the direction of PT Astra i.e., PT Astra and Perception Capital go up and down completely randomly.
Pair Corralation between PT Astra and Perception Capital
Assuming the 90 days horizon PT Astra International is expected to generate 23.25 times more return on investment than Perception Capital. However, PT Astra is 23.25 times more volatile than Perception Capital Corp. It trades about 0.04 of its potential returns per unit of risk. Perception Capital Corp is currently generating about 0.12 per unit of risk. If you would invest 36.00 in PT Astra International on September 3, 2024 and sell it today you would earn a total of 1.00 from holding PT Astra International or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 47.3% |
| Values | Daily Returns |
PT Astra International vs. Perception Capital Corp
Performance |
| Timeline |
| PT Astra International |
| Perception Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Perception Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Perception Capital
The main advantage of trading using opposite PT Astra and Perception Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Perception 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 Perception Capital will offset losses from the drop in Perception 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 |
| Perception Capital vs. Steven Madden | Perception Capital vs. Timken Company | Perception Capital vs. Virgin Group Acquisition | Perception Capital vs. Trupanion |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |