Correlation Between Astra International and Amyris
Can any of the company-specific risk be diversified away by investing in both Astra International and Amyris 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 Amyris 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 Amyris Inc, you can compare the effects of market volatilities on Astra International and Amyris 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 Amyris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Amyris.
Diversification Opportunities for Astra International and Amyris
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Amyris is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Amyris Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amyris Inc 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 Amyris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amyris Inc has no effect on the direction of Astra International i.e., Astra International and Amyris go up and down completely randomly.
Pair Corralation between Astra International and Amyris
If you would invest 101.00 in Amyris Inc on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Amyris Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Astra International Tbk vs. Amyris Inc
Performance |
| Timeline |
| Astra International Tbk |
| Amyris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Amyris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Amyris
The main advantage of trading using opposite Astra International and Amyris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Amyris 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 Amyris will offset losses from the drop in Amyris' long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Quantumscape Corp | Astra International vs. Lear Corporation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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