Correlation Between Dillards and Astra International
Can any of the company-specific risk be diversified away by investing in both Dillards and Astra International 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 Dillards and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dillards and Astra International Tbk, you can compare the effects of market volatilities on Dillards and Astra International 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 Dillards with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards and Astra International.
Diversification Opportunities for Dillards and Astra International
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dillards and Astra is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dillards and Astra International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra International Tbk and Dillards 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 Dillards are associated (or correlated) with Astra International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra International Tbk has no effect on the direction of Dillards i.e., Dillards and Astra International go up and down completely randomly.
Pair Corralation between Dillards and Astra International
Considering the 90-day investment horizon Dillards is expected to generate 1.31 times more return on investment than Astra International. However, Dillards is 1.31 times more volatile than Astra International Tbk. It trades about 0.12 of its potential returns per unit of risk. Astra International Tbk is currently generating about -0.05 per unit of risk. If you would invest 44,993 in Dillards on November 9, 2024 and sell it today you would earn a total of 2,231 from holding Dillards or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dillards vs. Astra International Tbk
Performance |
| Timeline |
| Dillards |
| Astra International Tbk |
Dillards and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dillards and Astra International
The main advantage of trading using opposite Dillards and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dillards position performs unexpectedly, Astra International 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 International will offset losses from the drop in Astra International's long position.| Dillards vs. Macys Inc | Dillards vs. Kohls Corp | Dillards vs. Marks Spencer Group | Dillards vs. Marks and Spencer |
| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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