Correlation Between Super Energy and Astra Agro
Can any of the company-specific risk be diversified away by investing in both Super Energy and Astra Agro 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 Super Energy and Astra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy Tbk and Astra Agro Lestari, you can compare the effects of market volatilities on Super Energy and Astra Agro 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 Super Energy with a short position of Astra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and Astra Agro.
Diversification Opportunities for Super Energy and Astra Agro
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Super and Astra is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy Tbk and Astra Agro Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Agro Lestari and Super Energy 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 Super Energy Tbk are associated (or correlated) with Astra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Agro Lestari has no effect on the direction of Super Energy i.e., Super Energy and Astra Agro go up and down completely randomly.
Pair Corralation between Super Energy and Astra Agro
Assuming the 90 days trading horizon Super Energy Tbk is expected to generate 1.94 times more return on investment than Astra Agro. However, Super Energy is 1.94 times more volatile than Astra Agro Lestari. It trades about 0.02 of its potential returns per unit of risk. Astra Agro Lestari is currently generating about 0.03 per unit of risk. If you would invest 227,000 in Super Energy Tbk on August 30, 2024 and sell it today you would earn a total of 4,000 from holding Super Energy Tbk or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy Tbk vs. Astra Agro Lestari
Performance |
| Timeline |
| Super Energy Tbk |
| Astra Agro Lestari |
Super Energy and Astra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and Astra Agro
The main advantage of trading using opposite Super Energy and Astra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, Astra Agro 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 Astra Agro will offset losses from the drop in Astra Agro's long position.| Super Energy vs. Petrosea Tbk | Super Energy vs. Harum Energy Tbk | Super Energy vs. Perdana Karya Perkasa | Super Energy vs. Bayan Resources Tbk |
| Astra Agro vs. Perusahaan Perkebunan London | Astra Agro vs. United Tractors Tbk | Astra Agro vs. Vale Indonesia Tbk | Astra Agro vs. Astra International Tbk |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |