Correlation Between PT Astra and Pyxus International

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

Diversification Opportunities for PT Astra and Pyxus International

0.79

Correlation Coefficient

PT Astra  Pyxus International

Poor diversification

The 3 months correlation between PTAIF and Pyxus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Pyxus International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxus International 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 Pyxus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxus International has no effect on the direction of PT Astra i.e., PT Astra and Pyxus International go up and down completely randomly.

Pair Corralation between PT Astra and Pyxus International

Assuming the 90 days horizon PT Astra is expected to generate 3.33 times less return on investment than Pyxus International. But when comparing it to its historical volatility, PT Astra International is 1.7 times less risky than Pyxus International. It trades about 0.1 of its potential returns per unit of risk. Pyxus International is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  390.00  in Pyxus International on April 21, 2025 and sell it today you would earn a total of  159.00  from holding Pyxus International or generate 40.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PT Astra International  vs.  Pyxus International

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 7 (%) 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.

Pyxus International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pyxus International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Pyxus International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Astra and Pyxus International

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

The idea behind PT Astra International and Pyxus International 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.