Correlation Between PT Astra and RSTN Old
Can any of the company-specific risk be diversified away by investing in both PT Astra and RSTN Old 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 RSTN Old 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 RSTN Old, you can compare the effects of market volatilities on PT Astra and RSTN Old 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 RSTN Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and RSTN Old.
Diversification Opportunities for PT Astra and RSTN Old
Pay attention - limited upside
The 3 months correlation between PTAIF and RSTN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and RSTN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RSTN Old 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 RSTN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RSTN Old has no effect on the direction of PT Astra i.e., PT Astra and RSTN Old go up and down completely randomly.
Pair Corralation between PT Astra and RSTN Old
Assuming the 90 days horizon PT Astra International is expected to generate 1.32 times more return on investment than RSTN Old. However, PT Astra is 1.32 times more volatile than RSTN Old. It trades about 0.02 of its potential returns per unit of risk. RSTN Old is currently generating about 0.01 per unit of risk. If you would invest 38.00 in PT Astra International on November 5, 2024 and sell it today you would lose (8.00) from holding PT Astra International or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.79% |
| Values | Daily Returns |
PT Astra International vs. RSTN Old
Performance |
| Timeline |
| PT Astra International |
| RSTN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and RSTN Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and RSTN Old
The main advantage of trading using opposite PT Astra and RSTN Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, RSTN Old 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 RSTN Old will offset losses from the drop in RSTN Old's long position.| PT Astra vs. DENSO | PT Astra vs. Denso Corp ADR | PT Astra vs. Bridgestone | PT Astra vs. Bridgestone Corp ADR |
| RSTN Old vs. Extreme Networks | RSTN Old vs. Terns Pharmaceuticals | RSTN Old vs. Genasys | RSTN Old vs. ADC Therapeutics SA |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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