Correlation Between PT Astra and Highway 50
Can any of the company-specific risk be diversified away by investing in both PT Astra and Highway 50 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 Highway 50 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 Highway 50 Gold, you can compare the effects of market volatilities on PT Astra and Highway 50 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 Highway 50. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Highway 50.
Diversification Opportunities for PT Astra and Highway 50
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and Highway is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Highway 50 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway 50 Gold 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 Highway 50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway 50 Gold has no effect on the direction of PT Astra i.e., PT Astra and Highway 50 go up and down completely randomly.
Pair Corralation between PT Astra and Highway 50
Assuming the 90 days horizon PT Astra International is expected to under-perform the Highway 50. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 19.76 times less risky than Highway 50. The pink sheet trades about -0.18 of its potential returns per unit of risk. The Highway 50 Gold is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Highway 50 Gold on September 1, 2025 and sell it today you would earn a total of 24.00 from holding Highway 50 Gold or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.69% |
| Values | Daily Returns |
PT Astra International vs. Highway 50 Gold
Performance |
| Timeline |
| PT Astra International |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Highway 50 Gold |
PT Astra and Highway 50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Highway 50
The main advantage of trading using opposite PT Astra and Highway 50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Highway 50 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 Highway 50 will offset losses from the drop in Highway 50's long position.| PT Astra vs. Xtera Communications | PT Astra vs. FullNet Communications | PT Astra vs. Rogers Communications | PT Astra vs. Paiute Oil Mining |
| Highway 50 vs. United Natural Foods | Highway 50 vs. SBM Offshore NV | Highway 50 vs. Solstad Offshore ASA | Highway 50 vs. Alibaba Health Information |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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