Correlation Between Deluxe and Astra International
Can any of the company-specific risk be diversified away by investing in both Deluxe 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 Deluxe and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deluxe and Astra International Tbk, you can compare the effects of market volatilities on Deluxe 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 Deluxe with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deluxe and Astra International.
Diversification Opportunities for Deluxe and Astra International
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deluxe and Astra is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe 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 Deluxe 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 Deluxe 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 Deluxe i.e., Deluxe and Astra International go up and down completely randomly.
Pair Corralation between Deluxe and Astra International
Considering the 90-day investment horizon Deluxe is expected to under-perform the Astra International. In addition to that, Deluxe is 1.9 times more volatile than Astra International Tbk. It trades about -0.14 of its total potential returns per unit of risk. Astra International Tbk is currently generating about -0.05 per unit of volatility. If you would invest 594.00 in Astra International Tbk on November 9, 2024 and sell it today you would lose (12.00) from holding Astra International Tbk or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deluxe vs. Astra International Tbk
Performance |
| Timeline |
| Deluxe |
| Astra International Tbk |
Deluxe and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deluxe and Astra International
The main advantage of trading using opposite Deluxe and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deluxe 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.| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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