Correlation Between Vantage Drilling and PT Astra

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

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

Diversification Opportunities for Vantage Drilling and PT Astra

0.0

Correlation Coefficient

Vantage Drilling  PT Astra

Pay attention - limited upside

The 3 months correlation between Vantage and ASII is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Drilling International and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and Vantage Drilling 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 Vantage Drilling International are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of Vantage Drilling i.e., Vantage Drilling and PT Astra go up and down completely randomly.

Pair Corralation between Vantage Drilling and PT Astra

If you would invest  0.02  in PT Astra International on September 8, 2025 and sell it today you would earn a total of  0.00  from holding PT Astra International or generate 0.0% return on investment over 90 days.

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

Vantage Drilling International  vs.  PT Astra International

Vantage Drilling Int

Risk-Adjusted Performance

Weakest

Over the last 90 days Vantage Drilling International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vantage Drilling is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 fairly weak forward indicators, PT Astra demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vantage Drilling and PT Astra

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

The idea behind Vantage Drilling International and PT Astra 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.

Check out your portfolio center.

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.