Correlation Between Australian Agricultural and Astra Agro
Can any of the company-specific risk be diversified away by investing in both Australian Agricultural and Astra Agro 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 Australian Agricultural and Astra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian Agricultural and Astra Agro Lestari, you can compare the effects of market volatilities on Australian Agricultural and Astra Agro 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 Australian Agricultural with a short position of Astra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Agricultural and Astra Agro.
Diversification Opportunities for Australian Agricultural and Astra Agro
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Australian and Astra is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Australian Agricultural and Astra Agro Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Agro Lestari and Australian Agricultural 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 Australian Agricultural are associated (or correlated) with Astra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Agro Lestari has no effect on the direction of Australian Agricultural i.e., Australian Agricultural and Astra Agro go up and down completely randomly.
Pair Corralation between Australian Agricultural and Astra Agro
If you would invest 179.00 in Astra Agro Lestari on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Astra Agro Lestari or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Australian Agricultural vs. Astra Agro Lestari
Performance |
| Timeline |
| Australian Agricultural |
| Astra Agro Lestari |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Australian Agricultural and Astra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian Agricultural and Astra Agro
The main advantage of trading using opposite Australian Agricultural and Astra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Agricultural position performs unexpectedly, Astra Agro 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 Astra Agro will offset losses from the drop in Astra Agro's long position.| Australian Agricultural vs. Avi Ltd ADR | Australian Agricultural vs. Altavoz Entertainment | Australian Agricultural vs. Aryzta AG PK | Australian Agricultural vs. Artisan Consumer Goods |
| Astra Agro vs. Forafric Global PLC | Astra Agro vs. Forafric Global PLC | Astra Agro vs. Australian Agricultural | Astra Agro vs. Limoneira Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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