Correlation Between PT Astra and Nio
Can any of the company-specific risk be diversified away by investing in both PT Astra and Nio 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 Nio 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 Nio Class A, you can compare the effects of market volatilities on PT Astra and Nio 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 Nio. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Nio.
Diversification Opportunities for PT Astra and Nio
Very good diversification
The 3 months correlation between PTAIF and Nio is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Nio Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nio Class A 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 Nio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nio Class A has no effect on the direction of PT Astra i.e., PT Astra and Nio go up and down completely randomly.
Pair Corralation between PT Astra and Nio
Assuming the 90 days horizon PT Astra International is expected to under-perform the Nio. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 3.47 times less risky than Nio. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Nio Class A is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Nio Class A on July 26, 2025 and sell it today you would earn a total of 207.00 from holding Nio Class A or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
PT Astra International vs. Nio Class A
Performance |
| Timeline |
| PT Astra International |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Nio Class A |
PT Astra and Nio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Nio
The main advantage of trading using opposite PT Astra and Nio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Nio 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 Nio will offset losses from the drop in Nio's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| Nio vs. Rivian Automotive | Nio vs. Honda Motor Co | Nio vs. Mobileye Global Class | Nio vs. Yum China Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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