Correlation Between PT Astra and Neuberger Berman

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

Diversification Opportunities for PT Astra and Neuberger Berman

0.0

Correlation Coefficient

PT Astra  Neuberger Berman

Pay attention - limited upside

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

Pair Corralation between PT Astra and Neuberger Berman

If you would invest  27.00  in PT Astra International on December 29, 2024 and sell it today you would earn a total of  1.00  from holding PT Astra International or generate 3.7% return on investment over 90 days.

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

PT Astra International  vs.  Neuberger Berman California

PT Astra International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward indicators, PT Astra may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Neuberger Berman Cal

Risk-Adjusted Performance

Very Weak

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

Pair Trading with PT Astra and Neuberger Berman

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

The idea behind PT Astra International and Neuberger Berman California 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.