Correlation Between PT Astra and Snipp Interactive
Can any of the company-specific risk be diversified away by investing in both PT Astra and Snipp Interactive 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 Snipp Interactive 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 Snipp Interactive, you can compare the effects of market volatilities on PT Astra and Snipp Interactive 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 Snipp Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Snipp Interactive.
Diversification Opportunities for PT Astra and Snipp Interactive
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Snipp is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive 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 Snipp Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snipp Interactive has no effect on the direction of PT Astra i.e., PT Astra and Snipp Interactive go up and down completely randomly.
Pair Corralation between PT Astra and Snipp Interactive
Assuming the 90 days horizon PT Astra International is expected to generate 0.88 times more return on investment than Snipp Interactive. However, PT Astra International is 1.14 times less risky than Snipp Interactive. It trades about 0.02 of its potential returns per unit of risk. Snipp Interactive is currently generating about 0.01 per unit of risk. If you would invest 39.00 in PT Astra International on August 27, 2024 and sell it today you would lose (2.00) from holding PT Astra International or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.44% |
| Values | Daily Returns |
PT Astra International vs. Snipp Interactive
Performance |
| Timeline |
| PT Astra International |
| Snipp Interactive |
PT Astra and Snipp Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Snipp Interactive
The main advantage of trading using opposite PT Astra and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Snipp Interactive 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 Snipp Interactive will offset losses from the drop in Snipp Interactive's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
| Snipp Interactive vs. HUMANA INC | Snipp Interactive vs. SCOR PK | Snipp Interactive vs. Aquagold International | Snipp Interactive vs. Barloworld Ltd ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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