Correlation Between PT Astra and Great Elm

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

Diversification Opportunities for PT Astra and Great Elm

-0.67

Correlation Coefficient

PT Astra  Great Elm

Excellent diversification

The 3 months correlation between PTAIF and Great is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of PT Astra i.e., PT Astra and Great Elm go up and down completely randomly.

Pair Corralation between PT Astra and Great Elm

Assuming the 90 days horizon PT Astra International is expected to under-perform the Great Elm. In addition to that, PT Astra is 3.61 times more volatile than Great Elm Capital. It trades about -0.03 of its total potential returns per unit of risk. Great Elm Capital is currently generating about 0.06 per unit of volatility. If you would invest  2,483  in Great Elm Capital on July 18, 2025 and sell it today you would earn a total of  35.00  from holding Great Elm Capital or generate 1.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

PT Astra International  vs.  Great Elm Capital

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 nearly stable forward indicators, PT Astra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Great Elm Capital

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Great Elm Capital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Great Elm is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with PT Astra and Great Elm

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

The idea behind PT Astra International and Great Elm Capital 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.