Correlation Between PT Astra and Quantum FinTech

Can any of the company-specific risk be diversified away by investing in both PT Astra and Quantum FinTech 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 Quantum FinTech 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 Quantum FinTech Acquisition, you can compare the effects of market volatilities on PT Astra and Quantum FinTech 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 Quantum FinTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and Quantum FinTech.

Diversification Opportunities for PT Astra and Quantum FinTech

0.8

Correlation Coefficient

PT Astra  Quantum FinTech

Very poor diversification

The 3 months correlation between PTAIF and Quantum is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Quantum FinTech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum FinTech Acqu 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 Quantum FinTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum FinTech Acqu has no effect on the direction of PT Astra i.e., PT Astra and Quantum FinTech go up and down completely randomly.

Pair Corralation between PT Astra and Quantum FinTech

If you would invest  37.00  in PT Astra International on September 12, 2024 and sell it today you would earn a total of  0.00  from holding PT Astra International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	0.6%
Values	Daily Returns

PT Astra International  vs.  Quantum FinTech Acquisition

PT Astra International

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward indicators, PT Astra reported solid returns over the last few months and may actually be approaching a breakup point.

Quantum FinTech Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quantum FinTech Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Quantum FinTech is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PT Astra and Quantum FinTech

The main advantage of trading using opposite PT Astra and Quantum FinTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, Quantum FinTech 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 Quantum FinTech will offset losses from the drop in Quantum FinTech's long position.

The idea behind PT Astra International and Quantum FinTech Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.