Correlation Between VOXX International and PT Astra
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and PT Astra International, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and PT Astra.
Diversification Opportunities for VOXX International and PT Astra
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VOXX and ASJA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International 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 VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and PT Astra go up and down completely randomly.
Pair Corralation between VOXX International and PT Astra
Assuming the 90 days horizon VOXX International is expected to generate 2.0 times less return on investment than PT Astra. But when comparing it to its historical volatility, VOXX International is 1.39 times less risky than PT Astra. It trades about 0.02 of its potential returns per unit of risk. PT Astra International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 29.00 in PT Astra International on October 26, 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 | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
VOXX International vs. PT Astra International
Performance |
Timeline |
VOXX International |
PT Astra International |
VOXX International and PT Astra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VOXX International and PT Astra
The main advantage of trading using opposite VOXX International and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.VOXX International vs. Yuexiu Transport Infrastructure | ||
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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