Correlation Between PT Astra and Universal Media
Can any of the company-specific risk be diversified away by investing in both PT Astra and Universal Media 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 Universal Media 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 Universal Media Group, you can compare the effects of market volatilities on PT Astra and Universal Media 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 Universal Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Universal Media.
Diversification Opportunities for PT Astra and Universal Media
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PTAIF and Universal is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Universal Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Media Group 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 Universal Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Media Group has no effect on the direction of PT Astra i.e., PT Astra and Universal Media go up and down completely randomly.
Pair Corralation between PT Astra and Universal Media
Assuming the 90 days horizon PT Astra is expected to generate 223.83 times less return on investment than Universal Media. But when comparing it to its historical volatility, PT Astra International is 4.6 times less risky than Universal Media. It trades about 0.0 of its potential returns per unit of risk. Universal Media Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Universal Media Group on November 27, 2024 and sell it today you would earn a total of 1.20 from holding Universal Media Group or generate 52.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 53.09% |
| Values | Daily Returns |
PT Astra International vs. Universal Media Group
Performance |
| Timeline |
| PT Astra International |
| Universal Media Group |
PT Astra and Universal Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Universal Media
The main advantage of trading using opposite PT Astra and Universal Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Universal Media 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 Universal Media will offset losses from the drop in Universal Media's long position.| PT Astra vs. Luminar Technologies | PT Astra vs. Mobileye Global Class | PT Astra vs. Hyliion Holdings Corp | PT Astra vs. Aeva Technologies, Common |
| Universal Media vs. Stepan Company | Universal Media vs. Gildan Activewear | Universal Media vs. Olympic Steel | Universal Media vs. Griffon |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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