Correlation Between PT Astra and FLFV Old

Can any of the company-specific risk be diversified away by investing in both PT Astra and FLFV Old 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 FLFV Old 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 FLFV Old, you can compare the effects of market volatilities on PT Astra and FLFV Old 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 FLFV Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and FLFV Old.

Diversification Opportunities for PT Astra and FLFV Old

0.0

Correlation Coefficient

PT Astra  FLFV Old

Pay attention - limited upside

The 3 months correlation between PTAIF and FLFV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and FLFV Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLFV Old 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 FLFV Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLFV Old has no effect on the direction of PT Astra i.e., PT Astra and FLFV Old go up and down completely randomly.

Pair Corralation between PT Astra and FLFV Old

If you would invest  30.00  in PT Astra International on December 19, 2024 and sell it today you would lose (1.00) from holding PT Astra International or give up 3.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PT Astra International  vs.  FLFV Old

PT Astra International

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Astra International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, PT Astra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FLFV Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FLFV Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, FLFV Old is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with PT Astra and FLFV Old

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

The idea behind PT Astra International and FLFV Old 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.