Correlation Between PT Astra and SCI Engineered
Can any of the company-specific risk be diversified away by investing in both PT Astra and SCI Engineered 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 SCI Engineered 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 SCI Engineered Materials, you can compare the effects of market volatilities on PT Astra and SCI Engineered 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 SCI Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and SCI Engineered.
Diversification Opportunities for PT Astra and SCI Engineered
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and SCI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and SCI Engineered Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Engineered Materials 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 SCI Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Engineered Materials has no effect on the direction of PT Astra i.e., PT Astra and SCI Engineered go up and down completely randomly.
Pair Corralation between PT Astra and SCI Engineered
If you would invest 466.00 in SCI Engineered Materials on September 2, 2024 and sell it today you would earn a total of 31.00 from holding SCI Engineered Materials or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. SCI Engineered Materials
Performance |
| Timeline |
| PT Astra International |
| SCI Engineered Materials |
PT Astra and SCI Engineered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and SCI Engineered
The main advantage of trading using opposite PT Astra and SCI Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, SCI Engineered 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 SCI Engineered will offset losses from the drop in SCI Engineered's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| SCI Engineered vs. Ultra Clean Holdings | SCI Engineered vs. Amtech Systems | SCI Engineered vs. Veeco Instruments | SCI Engineered vs. Cohu Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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