Correlation Between PT Astra and Sientra
Can any of the company-specific risk be diversified away by investing in both PT Astra and Sientra 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 Sientra 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 Sientra, you can compare the effects of market volatilities on PT Astra and Sientra 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 Sientra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Sientra.
Diversification Opportunities for PT Astra and Sientra
Poor diversification
The 3 months correlation between PTAIF and Sientra is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Sientra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sientra 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 Sientra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sientra has no effect on the direction of PT Astra i.e., PT Astra and Sientra go up and down completely randomly.
Pair Corralation between PT Astra and Sientra
Assuming the 90 days horizon PT Astra International is expected to under-perform the Sientra. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 3.16 times less risky than Sientra. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Sientra is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Sientra on September 4, 2024 and sell it today you would earn a total of 207.00 from holding Sientra or generate 93.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 15.63% |
| Values | Daily Returns |
PT Astra International vs. Sientra
Performance |
| Timeline |
| PT Astra International |
| Sientra |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Sientra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Sientra
The main advantage of trading using opposite PT Astra and Sientra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Sientra 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 Sientra will offset losses from the drop in Sientra's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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