Correlation Between PT Astra and ST Energy
Can any of the company-specific risk be diversified away by investing in both PT Astra and ST 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 ST 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 ST Energy Transition, you can compare the effects of market volatilities on PT Astra and ST 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 ST Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and ST Energy.
Diversification Opportunities for PT Astra and ST Energy
Very poor diversification
The 3 months correlation between PTAIF and STET is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and ST Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ST Energy Transition 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 ST Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ST Energy Transition has no effect on the direction of PT Astra i.e., PT Astra and ST Energy go up and down completely randomly.
Pair Corralation between PT Astra and ST Energy
If you would invest 1,049 in ST Energy Transition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding ST Energy Transition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Astra International vs. ST Energy Transition
Performance |
| Timeline |
| PT Astra International |
| ST Energy Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and ST Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and ST Energy
The main advantage of trading using opposite PT Astra and ST Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, ST 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 ST Energy will offset losses from the drop in ST Energy's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| ST Energy vs. A SPAC II | ST Energy vs. Athena Technology Acquisition | ST Energy vs. Hudson Acquisition I | ST Energy vs. Marblegate Acquisition Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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