Correlation Between Embotelladora Andina and PT Astra
Can any of the company-specific risk be diversified away by investing in both Embotelladora Andina 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 Embotelladora Andina and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Embotelladora Andina SA and PT Astra International, you can compare the effects of market volatilities on Embotelladora Andina 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 Embotelladora Andina with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and PT Astra.
Diversification Opportunities for Embotelladora Andina and PT Astra
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embotelladora and ASII is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA 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 Embotelladora Andina 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 Embotelladora Andina SA 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 Embotelladora Andina i.e., Embotelladora Andina and PT Astra go up and down completely randomly.
Pair Corralation between Embotelladora Andina and PT Astra
Assuming the 90 days horizon Embotelladora Andina is expected to generate 23.11 times less return on investment than PT Astra. But when comparing it to its historical volatility, Embotelladora Andina SA is 8.51 times less risky than PT Astra. It trades about 0.03 of its potential returns per unit of risk. PT Astra International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.08 in PT Astra International on November 2, 2024 and sell it today you would lose (0.03) from holding PT Astra International or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Embotelladora Andina SA vs. PT Astra International
Performance |
| Timeline |
| Embotelladora Andina |
| PT Astra International |
Embotelladora Andina and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and PT Astra
The main advantage of trading using opposite Embotelladora Andina and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina 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.| Embotelladora Andina vs. Signet International Holdings | Embotelladora Andina vs. National Beverage Corp | Embotelladora Andina vs. PT Astra International | Embotelladora Andina vs. Embotelladora Andina SA |
| PT Astra vs. Embotelladora Andina SA | PT Astra vs. Embotelladora Andina SA | PT Astra vs. Apple Rush | PT Astra vs. Alkame Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |