Correlation Between PT Astra and SDX Energy
Can any of the company-specific risk be diversified away by investing in both PT Astra and SDX 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 SDX 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 SDX Energy plc, you can compare the effects of market volatilities on PT Astra and SDX 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 SDX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and SDX Energy.
Diversification Opportunities for PT Astra and SDX Energy
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and SDX is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and SDX Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDX Energy plc 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 SDX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDX Energy plc has no effect on the direction of PT Astra i.e., PT Astra and SDX Energy go up and down completely randomly.
Pair Corralation between PT Astra and SDX Energy
If you would invest 1.92 in SDX Energy plc on August 29, 2024 and sell it today you would earn a total of 0.08 from holding SDX Energy plc or generate 4.17% 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. SDX Energy plc
Performance |
| Timeline |
| PT Astra International |
| SDX Energy plc |
PT Astra and SDX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and SDX Energy
The main advantage of trading using opposite PT Astra and SDX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, SDX 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 SDX Energy will offset losses from the drop in SDX Energy's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| SDX Energy vs. Permian Resources | SDX Energy vs. Devon Energy | SDX Energy vs. EOG Resources | SDX Energy vs. Coterra Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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