Correlation Between PetMed Express and Astra International
Can any of the company-specific risk be diversified away by investing in both PetMed Express 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 PetMed Express and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetMed Express and Astra International Tbk, you can compare the effects of market volatilities on PetMed Express 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 PetMed Express with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetMed Express and Astra International.
Diversification Opportunities for PetMed Express and Astra International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PetMed and Astra is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetMed Express 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 PetMed Express 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 PetMed Express 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 PetMed Express i.e., PetMed Express and Astra International go up and down completely randomly.
Pair Corralation between PetMed Express and Astra International
Given the investment horizon of 90 days PetMed Express is expected to generate 2.09 times more return on investment than Astra International. However, PetMed Express is 2.09 times more volatile than Astra International Tbk. It trades about 0.05 of its potential returns per unit of risk. Astra International Tbk is currently generating about 0.0 per unit of risk. If you would invest 464.00 in PetMed Express on November 3, 2024 and sell it today you would earn a total of 12.00 from holding PetMed Express or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetMed Express vs. Astra International Tbk
Performance |
| Timeline |
| PetMed Express |
| Astra International Tbk |
PetMed Express and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetMed Express and Astra International
The main advantage of trading using opposite PetMed Express and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetMed Express 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.| PetMed Express vs. High Tide | PetMed Express vs. China Jo Jo Drugstores | PetMed Express vs. Walgreens Boots Alliance | PetMed Express vs. 111 Inc |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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