Correlation Between PT Astra and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both PT Astra and Thai Beverage 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 Thai Beverage 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 Thai Beverage Public, you can compare the effects of market volatilities on PT Astra and Thai Beverage 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Thai Beverage.
Diversification Opportunities for PT Astra and Thai Beverage
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTAIF and Thai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage Public has no effect on the direction of PT Astra i.e., PT Astra and Thai Beverage go up and down completely randomly.
Pair Corralation between PT Astra and Thai Beverage
If you would invest 38.00 in Thai Beverage Public on August 24, 2024 and sell it today you would earn a total of 2.00 from holding Thai Beverage Public or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Thai Beverage Public
Performance |
| Timeline |
| PT Astra International |
| Thai Beverage Public |
PT Astra and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Thai Beverage
The main advantage of trading using opposite PT Astra and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Thai Beverage vs. Diageo PLC ADR | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Constellation Brands Class |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| 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 | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |