Correlation Between Suntec Real and PT Astra

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

By analyzing existing cross correlation between Suntec Real Estate and PT Astra Agro, you can compare the effects of market volatilities on Suntec Real 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 Suntec Real with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntec Real and PT Astra.

Diversification Opportunities for Suntec Real and PT Astra

0.0

Correlation Coefficient

Suntec Real  PT Astra

Pay attention - limited upside

The 3 months correlation between Suntec and PTABF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suntec Real Estate and PT Astra Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra Agro and Suntec Real 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 Suntec Real Estate 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 Agro has no effect on the direction of Suntec Real i.e., Suntec Real and PT Astra go up and down completely randomly.

Pair Corralation between Suntec Real and PT Astra

If you would invest (100.00) in PT Astra Agro on February 3, 2024 and sell it today you would earn a total of  100.00  from holding PT Astra Agro or generate -100.0% return on investment over 90 days.

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

Suntec Real Estate  vs.  PT Astra Agro

Suntec Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Suntec Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

PT Astra Agro

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Suntec Real and PT Astra

The main advantage of trading using opposite Suntec Real and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntec Real 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.

The idea behind Suntec Real Estate and PT Astra Agro 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.