Correlation Between PT Astra and Cable One
Can any of the company-specific risk be diversified away by investing in both PT Astra and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on PT Astra and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Cable One.
Diversification Opportunities for PT Astra and Cable One
Excellent diversification
The 3 months correlation between PTAIF and Cable is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of PT Astra i.e., PT Astra and Cable One go up and down completely randomly.
Pair Corralation between PT Astra and Cable One
Assuming the 90 days horizon PT Astra International is expected to under-perform the Cable One. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 3.11 times less risky than Cable One. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Cable One is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 12,450 in Cable One on July 12, 2025 and sell it today you would earn a total of 3,759 from holding Cable One or generate 30.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. Cable One
Performance |
| Timeline |
| PT Astra International |
| Cable One |
PT Astra and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Cable One
The main advantage of trading using opposite PT Astra and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| PT Astra vs. DENSO | PT Astra vs. Denso Corp ADR | PT Astra vs. Bridgestone | PT Astra vs. Bridgestone Corp ADR |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Cogent Communications Group | Cable One vs. Charter Communications | Cable One vs. Liberty Broadband Srs |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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