Correlation Between PT Astra and CAMP4 THERAPEUTICS

Can any of the company-specific risk be diversified away by investing in both PT Astra and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS PORATION, you can compare the effects of market volatilities on PT Astra and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and CAMP4 THERAPEUTICS.

Diversification Opportunities for PT Astra and CAMP4 THERAPEUTICS

-0.6

Correlation Coefficient

PT Astra  CAMP4 THERAPEUTICS

Excellent diversification

The 3 months correlation between PTAIF and CAMP4 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and CAMP4 THERAPEUTICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMP4 THERAPEUTICS has no effect on the direction of PT Astra i.e., PT Astra and CAMP4 THERAPEUTICS go up and down completely randomly.

Pair Corralation between PT Astra and CAMP4 THERAPEUTICS

Assuming the 90 days horizon PT Astra International is expected to generate 0.35 times more return on investment than CAMP4 THERAPEUTICS. However, PT Astra International is 2.86 times less risky than CAMP4 THERAPEUTICS. It trades about 0.14 of its potential returns per unit of risk. CAMP4 THERAPEUTICS PORATION is currently generating about -0.02 per unit of risk. If you would invest  28.00  in PT Astra International on May 4, 2025 and sell it today you would earn a total of  5.00  from holding PT Astra International or generate 17.86% return on investment over 90 days.

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

PT Astra International  vs.  CAMP4 THERAPEUTICS PORATION

PT Astra International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, PT Astra reported solid returns over the last few months and may actually be approaching a breakup point.

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAMP4 THERAPEUTICS PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, CAMP4 THERAPEUTICS is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with PT Astra and CAMP4 THERAPEUTICS

The main advantage of trading using opposite PT Astra and CAMP4 THERAPEUTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS will offset losses from the drop in CAMP4 THERAPEUTICS's long position.

The idea behind PT Astra International and CAMP4 THERAPEUTICS PORATION 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.