Correlation Between PT Astra and Nu Med

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

Diversification Opportunities for PT Astra and Nu Med

-0.29

Correlation Coefficient

PT Astra  Nu Med

Very good diversification

The 3 months correlation between PTAIF and NUMD is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Nu Med Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nu Med Plus 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 Nu Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nu Med Plus has no effect on the direction of PT Astra i.e., PT Astra and Nu Med go up and down completely randomly.

Pair Corralation between PT Astra and Nu Med

Assuming the 90 days horizon PT Astra is expected to generate 1.01 times less return on investment than Nu Med. But when comparing it to its historical volatility, PT Astra International is 3.79 times less risky than Nu Med. It trades about 0.12 of its potential returns per unit of risk. Nu Med Plus is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Nu Med Plus on May 10, 2025 and sell it today you would lose (0.11) from holding Nu Med Plus or give up 2.2% 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.  Nu Med Plus

PT Astra International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 9 (%) 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.

Nu Med Plus

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Med Plus are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Nu Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Nu Med

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

The idea behind PT Astra International and Nu Med Plus 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.