Correlation Between Koc Holdings and Astra International
Can any of the company-specific risk be diversified away by investing in both Koc Holdings 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 Koc Holdings and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holdings AS and Astra International Tbk, you can compare the effects of market volatilities on Koc Holdings 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 Koc Holdings with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holdings and Astra International.
Diversification Opportunities for Koc Holdings and Astra International
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koc and Astra is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holdings AS 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 Koc Holdings 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 Koc Holdings AS 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 Koc Holdings i.e., Koc Holdings and Astra International go up and down completely randomly.
Pair Corralation between Koc Holdings and Astra International
Assuming the 90 days horizon Koc Holdings AS is expected to under-perform the Astra International. In addition to that, Koc Holdings is 1.51 times more volatile than Astra International Tbk. It trades about 0.0 of its total potential returns per unit of risk. Astra International Tbk is currently generating about 0.03 per unit of volatility. If you would invest 600.00 in Astra International Tbk on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Astra International Tbk or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holdings AS vs. Astra International Tbk
Performance |
| Timeline |
| Koc Holdings AS |
| Astra International Tbk |
Koc Holdings and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holdings and Astra International
The main advantage of trading using opposite Koc Holdings and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holdings 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.| Koc Holdings vs. Akbank Turk Anonim | Koc Holdings vs. Turkiye Garanti Bankasi | Koc Holdings vs. Astra International Tbk | Koc Holdings vs. Bank Mandiri Persero |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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