Correlation Between PT Astra and Moxian

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

Diversification Opportunities for PT Astra and Moxian

-0.53

Correlation Coefficient

PT Astra  Moxian

Excellent diversification

The 3 months correlation between PTAIF and Moxian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Moxian Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moxian Inc 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 Moxian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moxian Inc has no effect on the direction of PT Astra i.e., PT Astra and Moxian go up and down completely randomly.

Pair Corralation between PT Astra and Moxian

If you would invest  100.00  in Moxian Inc on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Moxian Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

PT Astra International  vs.  Moxian Inc

PT Astra International

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward indicators, PT Astra reported solid returns over the last few months and may actually be approaching a breakup point.

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PT Astra and Moxian

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

The idea behind PT Astra International and Moxian Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.