Correlation Between PT Astra and Tokyo Electron
Can any of the company-specific risk be diversified away by investing in both PT Astra and Tokyo Electron 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 Tokyo Electron 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 Tokyo Electron Ltd, you can compare the effects of market volatilities on PT Astra and Tokyo Electron 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 Tokyo Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Tokyo Electron.
Diversification Opportunities for PT Astra and Tokyo Electron
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and Tokyo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Tokyo Electron Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyo Electron 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 Tokyo Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyo Electron has no effect on the direction of PT Astra i.e., PT Astra and Tokyo Electron go up and down completely randomly.
Pair Corralation between PT Astra and Tokyo Electron
If you would invest 37.00 in PT Astra International on August 24, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Tokyo Electron Ltd
Performance |
| Timeline |
| PT Astra International |
| Tokyo Electron |
PT Astra and Tokyo Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Tokyo Electron
The main advantage of trading using opposite PT Astra and Tokyo Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Tokyo Electron 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 Tokyo Electron will offset losses from the drop in Tokyo Electron's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Tokyo Electron vs. Advantest | Tokyo Electron vs. Disco Corp ADR | Tokyo Electron vs. Teradyne | Tokyo Electron vs. Lasertec |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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