Correlation Between PT Astra and Bion Environmental

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

Diversification Opportunities for PT Astra and Bion Environmental

0.63

Correlation Coefficient

PT Astra  Bion Environmental

Poor diversification

The 3 months correlation between PTAIF and Bion is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Bion Environmental Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bion Environmental 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 Bion Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bion Environmental has no effect on the direction of PT Astra i.e., PT Astra and Bion Environmental go up and down completely randomly.

Pair Corralation between PT Astra and Bion Environmental

Assuming the 90 days horizon PT Astra is expected to generate 19.89 times less return on investment than Bion Environmental. But when comparing it to its historical volatility, PT Astra International is 11.88 times less risky than Bion Environmental. It trades about 0.1 of its potential returns per unit of risk. Bion Environmental Technologies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  6.00  in Bion Environmental Technologies on April 23, 2025 and sell it today you would earn a total of  14.00  from holding Bion Environmental Technologies or generate 233.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PT Astra International  vs.  Bion Environmental Technologie

PT Astra International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, PT Astra may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bion Environmental

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bion Environmental Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Bion Environmental unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Bion Environmental

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

The idea behind PT Astra International and Bion Environmental Technologies 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.