Correlation Between PT Astra and Save Foods
Can any of the company-specific risk be diversified away by investing in both PT Astra and Save Foods 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 Save Foods 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 Save Foods, you can compare the effects of market volatilities on PT Astra and Save Foods 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 Save Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Save Foods.
Diversification Opportunities for PT Astra and Save Foods
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Save is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Save Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Save Foods 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 Save Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Save Foods has no effect on the direction of PT Astra i.e., PT Astra and Save Foods go up and down completely randomly.
Pair Corralation between PT Astra and Save Foods
Assuming the 90 days horizon PT Astra International is expected to generate 0.95 times more return on investment than Save Foods. However, PT Astra International is 1.05 times less risky than Save Foods. It trades about 0.05 of its potential returns per unit of risk. Save Foods is currently generating about 0.0 per unit of risk. If you would invest 29.00 in PT Astra International on September 2, 2024 and sell it today you would earn a total of 8.00 from holding PT Astra International or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 48.42% |
| Values | Daily Returns |
PT Astra International vs. Save Foods
Performance |
| Timeline |
| PT Astra International |
| Save Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Save Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Save Foods
The main advantage of trading using opposite PT Astra and Save Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Save Foods 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 Save Foods will offset losses from the drop in Save Foods' long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Save Foods vs. Origin Agritech | Save Foods vs. Benson Hill, Common | Save Foods vs. Corteva | Save Foods vs. Scotts Miracle Gro |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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