Correlation Between National Beverage and PT Astra
Can any of the company-specific risk be diversified away by investing in both National Beverage 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 National Beverage and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and PT Astra International, you can compare the effects of market volatilities on National Beverage 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 National Beverage with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and PT Astra.
Diversification Opportunities for National Beverage and PT Astra
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and ASII is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp 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 National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and PT Astra go up and down completely randomly.
Pair Corralation between National Beverage and PT Astra
Given the investment horizon of 90 days National Beverage is expected to generate 78.95 times less return on investment than PT Astra. But when comparing it to its historical volatility, National Beverage Corp is 12.11 times less risky than PT Astra. It trades about 0.01 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 0.14 in PT Astra International on August 24, 2024 and sell it today you would lose (0.09) from holding PT Astra International or give up 64.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Beverage Corp vs. PT Astra International
Performance |
| Timeline |
| National Beverage Corp |
| PT Astra International |
National Beverage and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and PT Astra
The main advantage of trading using opposite National Beverage and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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.| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |