Correlation Between Delek Drilling and PT Astra

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Can any of the company-specific risk be diversified away by investing in both Delek Drilling 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 Delek Drilling and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Drilling and PT Astra International, you can compare the effects of market volatilities on Delek Drilling 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 Delek Drilling with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Drilling and PT Astra.

Diversification Opportunities for Delek Drilling and PT Astra

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Delek and PTAIF is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Delek Drilling 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 Delek Drilling 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 Delek Drilling 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 Delek Drilling i.e., Delek Drilling and PT Astra go up and down completely randomly.

Pair Corralation between Delek Drilling and PT Astra

Assuming the 90 days horizon Delek Drilling is expected to generate 4.61 times more return on investment than PT Astra. However, Delek Drilling is 4.61 times more volatile than PT Astra International. It trades about 0.03 of its potential returns per unit of risk. PT Astra International is currently generating about -0.19 per unit of risk. If you would invest  479.00  in Delek Drilling on September 7, 2025 and sell it today you would earn a total of  12.00  from holding Delek Drilling or generate 2.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy42.19%
ValuesDaily Returns

Delek Drilling   vs.  PT Astra International

 Performance 
       Timeline  
Delek Drilling 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Delek Drilling are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Delek Drilling is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
PT Astra International 

Risk-Adjusted Performance

Weakest

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

Delek Drilling and PT Astra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Delek Drilling and PT Astra

The main advantage of trading using opposite Delek Drilling and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Drilling 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 Delek Drilling and PT Astra International 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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