Correlation Between PT Astra and Sigma Labs
Can any of the company-specific risk be diversified away by investing in both PT Astra and Sigma Labs 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 Sigma Labs 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 Sigma Labs, you can compare the effects of market volatilities on PT Astra and Sigma Labs 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 Sigma Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Sigma Labs.
Diversification Opportunities for PT Astra and Sigma Labs
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Sigma is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Sigma Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigma Labs 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 Sigma Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigma Labs has no effect on the direction of PT Astra i.e., PT Astra and Sigma Labs go up and down completely randomly.
Pair Corralation between PT Astra and Sigma Labs
If you would invest 21.00 in Sigma Labs on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sigma Labs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Astra International vs. Sigma Labs
Performance |
| Timeline |
| PT Astra International |
| Sigma Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Sigma Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Sigma Labs
The main advantage of trading using opposite PT Astra and Sigma Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Sigma Labs 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 Sigma Labs will offset losses from the drop in Sigma Labs' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Sigma Labs vs. Flint Telecom Group | Sigma Labs vs. Castellum | Sigma Labs vs. Datametrex AI Limited | Sigma Labs vs. TTEC 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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