Correlation Between PT Astra and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both PT Astra and Tingyi Holding 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 Tingyi Holding 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 Tingyi Holding Corp, you can compare the effects of market volatilities on PT Astra and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Tingyi Holding.
Diversification Opportunities for PT Astra and Tingyi Holding
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and Tingyi is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of PT Astra i.e., PT Astra and Tingyi Holding go up and down completely randomly.
Pair Corralation between PT Astra and Tingyi Holding
If you would invest 31.00 in PT Astra International on September 14, 2024 and sell it today you would earn a total of 6.00 from holding PT Astra International or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.61% |
| Values | Daily Returns |
PT Astra International vs. Tingyi Holding Corp
Performance |
| Timeline |
| PT Astra International |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Tingyi Holding
The main advantage of trading using opposite PT Astra and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| PT Astra vs. Astra International Tbk | PT Astra vs. Mobileye Global Class | PT Astra vs. HUMANA INC | PT Astra vs. Barloworld Ltd ADR |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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