Correlation Between Astra International and Airborne Wireless
Can any of the company-specific risk be diversified away by investing in both Astra International and Airborne Wireless 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 Astra International and Airborne Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra International Tbk and Airborne Wireless Network, you can compare the effects of market volatilities on Astra International and Airborne Wireless 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 Astra International with a short position of Airborne Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Airborne Wireless.
Diversification Opportunities for Astra International and Airborne Wireless
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Airborne is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Airborne Wireless Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airborne Wireless Network and Astra International 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 Astra International Tbk are associated (or correlated) with Airborne Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airborne Wireless Network has no effect on the direction of Astra International i.e., Astra International and Airborne Wireless go up and down completely randomly.
Pair Corralation between Astra International and Airborne Wireless
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Airborne Wireless. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 31.34 times less risky than Airborne Wireless. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Airborne Wireless Network is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Airborne Wireless Network on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Airborne Wireless Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Airborne Wireless Network
Performance |
| Timeline |
| Astra International Tbk |
| Airborne Wireless Network |
Astra International and Airborne Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Airborne Wireless
The main advantage of trading using opposite Astra International and Airborne Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Airborne Wireless 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 Airborne Wireless will offset losses from the drop in Airborne Wireless' long position.| Astra International vs. PT Astra International | Astra International vs. Mobileye Global Class | Astra International vs. HUMANA INC | Astra International vs. Barloworld Ltd ADR |
| Airborne Wireless vs. BCE Inc | Airborne Wireless vs. Axiologix | Airborne Wireless vs. Advanced Info Service | Airborne Wireless vs. American Nortel Communications |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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