Correlation Between PT Astra and Sizzle Acquisition
Can any of the company-specific risk be diversified away by investing in both PT Astra and Sizzle Acquisition 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 Sizzle Acquisition 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 Sizzle Acquisition Corp, you can compare the effects of market volatilities on PT Astra and Sizzle Acquisition 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 Sizzle Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Sizzle Acquisition.
Diversification Opportunities for PT Astra and Sizzle Acquisition
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTAIF and Sizzle is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Sizzle Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sizzle Acquisition Corp 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 Sizzle Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sizzle Acquisition Corp has no effect on the direction of PT Astra i.e., PT Astra and Sizzle Acquisition go up and down completely randomly.
Pair Corralation between PT Astra and Sizzle Acquisition
Assuming the 90 days horizon PT Astra International is expected to under-perform the Sizzle Acquisition. In addition to that, PT Astra is 7.9 times more volatile than Sizzle Acquisition Corp. It trades about -0.01 of its total potential returns per unit of risk. Sizzle Acquisition Corp is currently generating about 0.24 per unit of volatility. If you would invest 1,079 in Sizzle Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Sizzle Acquisition Corp or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.33% |
| Values | Daily Returns |
PT Astra International vs. Sizzle Acquisition Corp
Performance |
| Timeline |
| PT Astra International |
| Sizzle Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Sizzle Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Sizzle Acquisition
The main advantage of trading using opposite PT Astra and Sizzle Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Sizzle Acquisition 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 Sizzle Acquisition will offset losses from the drop in Sizzle Acquisition's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Sizzle Acquisition vs. Battery Future Acquisition | Sizzle Acquisition vs. KAT Exploration | Sizzle Acquisition vs. Aqua Power Systems | Sizzle Acquisition vs. Metal Sky Star |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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