Correlation Between PT Astra and XPAC Acquisition
Can any of the company-specific risk be diversified away by investing in both PT Astra and XPAC Acquisition 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 XPAC Acquisition 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 XPAC Acquisition Corp, you can compare the effects of market volatilities on PT Astra and XPAC Acquisition 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 XPAC Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and XPAC Acquisition.
Diversification Opportunities for PT Astra and XPAC Acquisition
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTAIF and XPAC is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and XPAC Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPAC Acquisition 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 XPAC Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPAC Acquisition Corp has no effect on the direction of PT Astra i.e., PT Astra and XPAC Acquisition go up and down completely randomly.
Pair Corralation between PT Astra and XPAC Acquisition
Assuming the 90 days horizon PT Astra is expected to generate 60.45 times less return on investment than XPAC Acquisition. But when comparing it to its historical volatility, PT Astra International is 13.49 times less risky than XPAC Acquisition. It trades about 0.04 of its potential returns per unit of risk. XPAC Acquisition Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4.02 in XPAC Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 2.19 from holding XPAC Acquisition Corp or generate 54.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 37.14% |
| Values | Daily Returns |
PT Astra International vs. XPAC Acquisition Corp
Performance |
| Timeline |
| PT Astra International |
| XPAC Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Astra and XPAC Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and XPAC Acquisition
The main advantage of trading using opposite PT Astra and XPAC Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, XPAC Acquisition 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 XPAC Acquisition will offset losses from the drop in XPAC Acquisition's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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