Correlation Between PT Astra and Abcellera Biologics

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

Diversification Opportunities for PT Astra and Abcellera Biologics

0.79

Correlation Coefficient

PT Astra  Abcellera Biologics

Poor diversification

The 3 months correlation between PTAIF and Abcellera is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics 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 Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of PT Astra i.e., PT Astra and Abcellera Biologics go up and down completely randomly.

Pair Corralation between PT Astra and Abcellera Biologics

Assuming the 90 days horizon PT Astra International is expected to under-perform the Abcellera Biologics. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 1.14 times less risky than Abcellera Biologics. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Abcellera Biologics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  551.00  in Abcellera Biologics on May 16, 2025 and sell it today you would lose (101.00) from holding Abcellera Biologics or give up 18.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	37.45%
Values	Daily Returns

PT Astra International  vs.  Abcellera Biologics

PT Astra International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward indicators, PT Astra may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Abcellera Biologics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Abcellera Biologics are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Abcellera Biologics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Abcellera Biologics

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

The idea behind PT Astra International and Abcellera Biologics 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.