Correlation Between PT Astra and Signet Jewelers
Can any of the company-specific risk be diversified away by investing in both PT Astra and Signet Jewelers 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 Signet Jewelers 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 Signet Jewelers, you can compare the effects of market volatilities on PT Astra and Signet Jewelers 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 Signet Jewelers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Signet Jewelers.
Diversification Opportunities for PT Astra and Signet Jewelers
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTAIF and Signet is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Signet Jewelers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signet Jewelers 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 Signet Jewelers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signet Jewelers has no effect on the direction of PT Astra i.e., PT Astra and Signet Jewelers go up and down completely randomly.
Pair Corralation between PT Astra and Signet Jewelers
Assuming the 90 days horizon PT Astra International is expected to under-perform the Signet Jewelers. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 4.04 times less risky than Signet Jewelers. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Signet Jewelers is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,958 in Signet Jewelers on August 28, 2025 and sell it today you would earn a total of 1,034 from holding Signet Jewelers or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
PT Astra International vs. Signet Jewelers
Performance |
| Timeline |
| PT Astra International |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Signet Jewelers |
PT Astra and Signet Jewelers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and Signet Jewelers
The main advantage of trading using opposite PT Astra and Signet Jewelers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Signet Jewelers 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 Signet Jewelers will offset losses from the drop in Signet Jewelers' long position.| PT Astra vs. Universal Insurance Holdings | PT Astra vs. Delek Drilling | PT Astra vs. Pekin Life Insurance | PT Astra vs. American Coastal Insurance |
| Signet Jewelers vs. Advantex Marketing International | Signet Jewelers vs. Laureate Education | Signet Jewelers vs. Education Management Corp | Signet Jewelers vs. Perdoceo Education Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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