Correlation Between PT Astra and Voestalpine
Can any of the company-specific risk be diversified away by investing in both PT Astra and Voestalpine 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 Voestalpine 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 Voestalpine AG PK, you can compare the effects of market volatilities on PT Astra and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Voestalpine.
Diversification Opportunities for PT Astra and Voestalpine
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and Voestalpine is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Voestalpine AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine AG PK 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG PK has no effect on the direction of PT Astra i.e., PT Astra and Voestalpine go up and down completely randomly.
Pair Corralation between PT Astra and Voestalpine
Assuming the 90 days horizon PT Astra International is expected to generate 1.15 times more return on investment than Voestalpine. However, PT Astra is 1.15 times more volatile than Voestalpine AG PK. It trades about 0.05 of its potential returns per unit of risk. Voestalpine AG PK is currently generating about -0.02 per unit of risk. If you would invest 32.00 in PT Astra International on September 19, 2024 and sell it today you would earn a total of 5.00 from holding PT Astra International or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.59% |
| Values | Daily Returns |
PT Astra International vs. Voestalpine AG PK
Performance |
| Timeline |
| PT Astra International |
| Voestalpine AG PK |
PT Astra and Voestalpine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Voestalpine
The main advantage of trading using opposite PT Astra and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.| PT Astra vs. Mobileye Global Class | PT Astra vs. HUMANA INC | PT Astra vs. Barloworld Ltd ADR | PT Astra vs. Morningstar Unconstrained Allocation |
| Voestalpine vs. ArcelorMittal SA ADR | Voestalpine vs. Gerdau SA ADR | Voestalpine vs. POSCO Holdings | Voestalpine vs. HUMANA INC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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