Correlation Between ASTRA INTERNATIONAL and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and AmerisourceBergen 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 AmerisourceBergen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and AmerisourceBergen, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and AmerisourceBergen 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 AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and AmerisourceBergen.
Diversification Opportunities for ASTRA INTERNATIONAL and AmerisourceBergen
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASTRA and AmerisourceBergen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen 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 are associated (or correlated) with AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and AmerisourceBergen go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and AmerisourceBergen
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 12.9 times less return on investment than AmerisourceBergen. In addition to that, ASTRA INTERNATIONAL is 1.56 times more volatile than AmerisourceBergen. It trades about 0.01 of its total potential returns per unit of risk. AmerisourceBergen is currently generating about 0.24 per unit of volatility. If you would invest 21,519 in AmerisourceBergen on August 28, 2024 and sell it today you would earn a total of 1,686 from holding AmerisourceBergen or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. AmerisourceBergen
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| AmerisourceBergen |
ASTRA INTERNATIONAL and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and AmerisourceBergen
The main advantage of trading using opposite ASTRA INTERNATIONAL and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen's long position.| ASTRA INTERNATIONAL vs. Apple Inc | ASTRA INTERNATIONAL vs. Apple Inc | ASTRA INTERNATIONAL vs. Microsoft | ASTRA INTERNATIONAL vs. Microsoft |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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