Correlation Between Astra International and Rushnet

Can any of the company-specific risk be diversified away by investing in both Astra International and Rushnet 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 Astra International and Rushnet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astra International Tbk and Rushnet, you can compare the effects of market volatilities on Astra International and Rushnet 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 Astra International with a short position of Rushnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Rushnet.

Diversification Opportunities for Astra International and Rushnet

-0.31

Correlation Coefficient

Astra International  Rushnet

Very good diversification

The 3 months correlation between Astra and Rushnet is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Rushnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rushnet and Astra International 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 Astra International Tbk are associated (or correlated) with Rushnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rushnet has no effect on the direction of Astra International i.e., Astra International and Rushnet go up and down completely randomly.

Pair Corralation between Astra International and Rushnet

Assuming the 90 days horizon Astra International is expected to generate 668.95 times less return on investment than Rushnet. But when comparing it to its historical volatility, Astra International Tbk is 176.11 times less risky than Rushnet. It trades about 0.1 of its potential returns per unit of risk. Rushnet is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Rushnet on May 6, 2025 and sell it today you would lose (0.01) from holding Rushnet or give up 50.0% of portfolio value over 90 days.

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

Astra International Tbk  vs.  Rushnet

Astra International Tbk

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astra International Tbk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward indicators, Astra International showed solid returns over the last few months and may actually be approaching a breakup point.

Rushnet

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Rushnet are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical indicators, Rushnet displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astra International and Rushnet

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

The idea behind Astra International Tbk and Rushnet 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.