Correlation Between PT Astra and Cypress Development

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

Diversification Opportunities for PT Astra and Cypress Development

-0.15

Correlation Coefficient

PT Astra  Cypress Development

Good diversification

The 3 months correlation between PTAIF and Cypress is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Cypress Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cypress Development Corp 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 Cypress Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cypress Development Corp has no effect on the direction of PT Astra i.e., PT Astra and Cypress Development go up and down completely randomly.

Pair Corralation between PT Astra and Cypress Development

Assuming the 90 days horizon PT Astra International is expected to generate 0.68 times more return on investment than Cypress Development. However, PT Astra International is 1.48 times less risky than Cypress Development. It trades about 0.02 of its potential returns per unit of risk. Cypress Development Corp is currently generating about 0.0 per unit of risk. If you would invest  30.00  in PT Astra International on August 5, 2025 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 Against
Strength	Insignificant
Accuracy	43.35%
Values	Daily Returns

PT Astra International  vs.  Cypress Development Corp

PT Astra International

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Astra International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Cypress Development Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cypress Development Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cypress Development may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with PT Astra and Cypress Development

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

The idea behind PT Astra International and Cypress Development Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.