Correlation Between WH Group and PT Astra
Can any of the company-specific risk be diversified away by investing in both WH Group 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 WH Group and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WH Group Limited and PT Astra International, you can compare the effects of market volatilities on WH Group 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 WH Group with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of WH Group and PT Astra.
Diversification Opportunities for WH Group and PT Astra
Very poor diversification
The 3 months correlation between WHGRF and PTAIF is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding WH Group Limited 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 WH Group 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 WH Group Limited 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 WH Group i.e., WH Group and PT Astra go up and down completely randomly.
Pair Corralation between WH Group and PT Astra
If you would invest 37.00 in PT Astra International on August 24, 2024 and sell it today you would earn a total of 0.00 from holding PT Astra International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
WH Group Limited vs. PT Astra International
Performance |
| Timeline |
| WH Group Limited |
| PT Astra International |
WH Group and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WH Group and PT Astra
The main advantage of trading using opposite WH Group and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WH Group 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.| WH Group vs. Premier Foods Plc | WH Group vs. Torque Lifestyle Brands | WH Group vs. Naturally Splendid Enterprises | WH Group vs. Aryzta AG PK |
| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Lear Corporation | PT Astra vs. BorgWarner |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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