Correlation Between PT Astra and Zoom Video

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

Diversification Opportunities for PT Astra and Zoom Video

-0.36

Correlation Coefficient

PT Astra  Zoom Video

Very good diversification

The 3 months correlation between PTAIF and Zoom is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of PT Astra i.e., PT Astra and Zoom Video go up and down completely randomly.

Pair Corralation between PT Astra and Zoom Video

Assuming the 90 days horizon PT Astra International is expected to under-perform the Zoom Video. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Astra International is 1.62 times less risky than Zoom Video. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Zoom Video Communications is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  7,563  in Zoom Video Communications on July 24, 2025 and sell it today you would earn a total of  798.00  from holding Zoom Video Communications or generate 10.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.06%
Values	Daily Returns

PT Astra International  vs.  Zoom Video Communications

PT Astra International

Risk-Adjusted Performance

Weakest

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

Zoom Video Communications

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Zoom Video Communications are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Zoom Video may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with PT Astra and Zoom Video

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

The idea behind PT Astra International and Zoom Video Communications 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 Global Correlations module to find global opportunities by holding instruments from different markets.