Correlation Between PT Astra and Starguide
Can any of the company-specific risk be diversified away by investing in both PT Astra and Starguide 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 Starguide 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 Starguide Group, you can compare the effects of market volatilities on PT Astra and Starguide 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 Starguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Starguide.
Diversification Opportunities for PT Astra and Starguide
Pay attention - limited upside
The 3 months correlation between PTAIF and Starguide is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Starguide Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starguide Group 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 Starguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starguide Group has no effect on the direction of PT Astra i.e., PT Astra and Starguide go up and down completely randomly.
Pair Corralation between PT Astra and Starguide
Assuming the 90 days horizon PT Astra is expected to generate 12.66 times less return on investment than Starguide. But when comparing it to its historical volatility, PT Astra International is 6.08 times less risky than Starguide. It trades about 0.04 of its potential returns per unit of risk. Starguide Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Starguide Group on September 3, 2024 and sell it today you would lose (390.00) from holding Starguide Group or give up 97.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.51% |
| Values | Daily Returns |
PT Astra International vs. Starguide Group
Performance |
| Timeline |
| PT Astra International |
| Starguide Group |
PT Astra and Starguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Starguide
The main advantage of trading using opposite PT Astra and Starguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Starguide 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 Starguide will offset losses from the drop in Starguide's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Starguide vs. Manaris Corp | Starguide vs. Green Planet Bio | Starguide vs. Continental Beverage Brands | Starguide vs. Opus Magnum Ameris |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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