Correlation Between Astra International and Multifiling Mitra

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

Diversification Opportunities for Astra International and Multifiling Mitra

0.0

Correlation Coefficient

Astra International  Multifiling Mitra

Pay attention - limited upside

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

Pair Corralation between Astra International and Multifiling Mitra

If you would invest  448,644  in Astra International Tbk on April 20, 2025 and sell it today you would earn a total of  26,356  from holding Astra International Tbk or generate 5.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astra International Tbk  vs.  Multifiling Mitra Indonesia

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. Despite quite conflicting forward-looking signals, Astra International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Multifiling Mitra

Risk-Adjusted Performance

Very Weak

Over the last 90 days Multifiling Mitra Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Multifiling Mitra 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 Astra International and Multifiling Mitra

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

The idea behind Astra International Tbk and Multifiling Mitra Indonesia 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.