Correlation Between Astar and Yanaprima Hastapersada

Can any of the company-specific risk be diversified away by investing in both Astar and Yanaprima Hastapersada 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 Astar and Yanaprima Hastapersada into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astar and Yanaprima Hastapersada Tbk, you can compare the effects of market volatilities on Astar and Yanaprima Hastapersada 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 Astar with a short position of Yanaprima Hastapersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Yanaprima Hastapersada.

Diversification Opportunities for Astar and Yanaprima Hastapersada

-0.12

Correlation Coefficient

Astar  Yanaprima Hastapersada

Good diversification

The 3 months correlation between Astar and Yanaprima is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Yanaprima Hastapersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanaprima Hastapersada and Astar 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 Astar are associated (or correlated) with Yanaprima Hastapersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanaprima Hastapersada has no effect on the direction of Astar i.e., Astar and Yanaprima Hastapersada go up and down completely randomly.

Pair Corralation between Astar and Yanaprima Hastapersada

Assuming the 90 days trading horizon Astar is expected to generate 2.57 times more return on investment than Yanaprima Hastapersada. However, Astar is 2.57 times more volatile than Yanaprima Hastapersada Tbk. It trades about 0.04 of its potential returns per unit of risk. Yanaprima Hastapersada Tbk is currently generating about -0.04 per unit of risk. If you would invest  4.75  in Astar on October 12, 2024 and sell it today you would earn a total of  1.26  from holding Astar or generate 26.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.46%
Values	Daily Returns

Astar  vs.  Yanaprima Hastapersada Tbk

Astar

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astar are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Astar is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Yanaprima Hastapersada

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yanaprima Hastapersada Tbk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Yanaprima Hastapersada disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astar and Yanaprima Hastapersada

The main advantage of trading using opposite Astar and Yanaprima Hastapersada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Yanaprima Hastapersada 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 Yanaprima Hastapersada will offset losses from the drop in Yanaprima Hastapersada's long position.

The idea behind Astar and Yanaprima Hastapersada Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..