Correlation Between PT Astra and Careview Comm

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

Diversification Opportunities for PT Astra and Careview Comm

-0.38

Correlation Coefficient

PT Astra  Careview Comm

Very good diversification

The 3 months correlation between PTAIF and Careview is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Careview Comm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careview Comm 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 Careview Comm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careview Comm has no effect on the direction of PT Astra i.e., PT Astra and Careview Comm go up and down completely randomly.

Pair Corralation between PT Astra and Careview Comm

Assuming the 90 days horizon PT Astra is expected to generate 3.52 times less return on investment than Careview Comm. But when comparing it to its historical volatility, PT Astra International is 8.99 times less risky than Careview Comm. It trades about 0.14 of its potential returns per unit of risk. Careview Comm is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2.97  in Careview Comm on May 4, 2025 and sell it today you would lose (0.87) from holding Careview Comm or give up 29.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

PT Astra International  vs.  Careview Comm

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.

Careview Comm

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Careview Comm are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Careview Comm showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Careview Comm

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

The idea behind PT Astra International and Careview Comm 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.