Correlation Between PT Astra and First Solar
Can any of the company-specific risk be diversified away by investing in both PT Astra and First Solar 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 First Solar 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 First Solar, you can compare the effects of market volatilities on PT Astra and First Solar 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 First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and First Solar.
Diversification Opportunities for PT Astra and First Solar
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTAIF and First is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar 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 First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of PT Astra i.e., PT Astra and First Solar go up and down completely randomly.
Pair Corralation between PT Astra and First Solar
Assuming the 90 days horizon PT Astra International is expected to under-perform the First Solar. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 2.11 times less risky than First Solar. The pink sheet trades about -0.03 of its potential returns per unit of risk. The First Solar is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17,193 in First Solar on July 15, 2025 and sell it today you would earn a total of 5,398 from holding First Solar or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. First Solar
Performance |
| Timeline |
| PT Astra International |
| First Solar |
PT Astra and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and First Solar
The main advantage of trading using opposite PT Astra and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, First Solar 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 First Solar will offset losses from the drop in First Solar's long position.| PT Astra vs. DENSO | PT Astra vs. Denso Corp ADR | PT Astra vs. Bridgestone | PT Astra vs. Bridgestone Corp ADR |
| First Solar vs. SolarEdge Technologies | First Solar vs. Enphase Energy | First Solar vs. Canadian Solar | First Solar vs. Sunrun Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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