Correlation Between Sunstone Hotel and PT Astra
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and PT Astra 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 Sunstone Hotel and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and PT Astra International, you can compare the effects of market volatilities on Sunstone Hotel and PT Astra 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 Sunstone Hotel with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and PT Astra.
Diversification Opportunities for Sunstone Hotel and PT Astra
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunstone and ASJA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and Sunstone Hotel 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 Sunstone Hotel Investors are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and PT Astra go up and down completely randomly.
Pair Corralation between Sunstone Hotel and PT Astra
Assuming the 90 days horizon Sunstone Hotel Investors is expected to generate 0.43 times more return on investment than PT Astra. However, Sunstone Hotel Investors is 2.32 times less risky than PT Astra. It trades about 0.13 of its potential returns per unit of risk. PT Astra International is currently generating about 0.0 per unit of risk. If you would invest 992.00 in Sunstone Hotel Investors on October 30, 2024 and sell it today you would earn a total of 98.00 from holding Sunstone Hotel Investors or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunstone Hotel Investors vs. PT Astra International
Performance |
| Timeline |
| Sunstone Hotel Investors |
| PT Astra International |
Sunstone Hotel and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and PT Astra
The main advantage of trading using opposite Sunstone Hotel and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, PT Astra 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 PT Astra will offset losses from the drop in PT Astra's long position.| Sunstone Hotel vs. PNC Financial Services | Sunstone Hotel vs. Rayonier Advanced Materials | Sunstone Hotel vs. Treasury Wine Estates | Sunstone Hotel vs. JSC Halyk bank |
| PT Astra vs. MAGNUM MINING EXP | PT Astra vs. PNC Financial Services | PT Astra vs. JSC Halyk bank | PT Astra vs. BANKINTER ADR 2007 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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