Correlation Between PT Astra and Kidpik Corp

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

Diversification Opportunities for PT Astra and Kidpik Corp

-0.78

Correlation Coefficient

PT Astra  Kidpik Corp

Pay attention - limited upside

The 3 months correlation between PTAIF and Kidpik is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik 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 Kidpik Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidpik Corp has no effect on the direction of PT Astra i.e., PT Astra and Kidpik Corp go up and down completely randomly.

Pair Corralation between PT Astra and Kidpik Corp

If you would invest  28.00  in PT Astra International on May 2, 2025 and sell it today you would earn a total of  3.00  from holding PT Astra International or generate 10.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.64%
Values	Daily Returns

PT Astra International  vs.  Kidpik Corp

PT Astra International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PT Astra International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, PT Astra may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Kidpik Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kidpik Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Kidpik Corp is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PT Astra and Kidpik Corp

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

The idea behind PT Astra International and Kidpik 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.