Correlation Between PT Astra and Spero Therapeutics
Can any of the company-specific risk be diversified away by investing in both PT Astra and Spero Therapeutics 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 Spero Therapeutics 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 Spero Therapeutics, you can compare the effects of market volatilities on PT Astra and Spero Therapeutics 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 Spero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Spero Therapeutics.
Diversification Opportunities for PT Astra and Spero Therapeutics
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Spero is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Spero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spero Therapeutics 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 Spero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spero Therapeutics has no effect on the direction of PT Astra i.e., PT Astra and Spero Therapeutics go up and down completely randomly.
Pair Corralation between PT Astra and Spero Therapeutics
Assuming the 90 days horizon PT Astra International is expected to generate 1.07 times more return on investment than Spero Therapeutics. However, PT Astra is 1.07 times more volatile than Spero Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Spero Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 33.00 in PT Astra International on August 24, 2024 and sell it today you would earn a total of 4.00 from holding PT Astra International or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
PT Astra International vs. Spero Therapeutics
Performance |
| Timeline |
| PT Astra International |
| Spero Therapeutics |
PT Astra and Spero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Spero Therapeutics
The main advantage of trading using opposite PT Astra and Spero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Spero Therapeutics 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 Spero Therapeutics will offset losses from the drop in Spero Therapeutics' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Spero Therapeutics vs. Assembly Biosciences | Spero Therapeutics vs. Achilles Therapeutics PLC | Spero Therapeutics vs. Instil Bio | Spero Therapeutics vs. CytomX Therapeutics |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world |