Correlation Between Astra International and FDG Electric
Can any of the company-specific risk be diversified away by investing in both Astra International and FDG Electric 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 FDG Electric 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 FDG Electric Vehicles, you can compare the effects of market volatilities on Astra International and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and FDG Electric.
Diversification Opportunities for Astra International and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of Astra International i.e., Astra International and FDG Electric go up and down completely randomly.
Pair Corralation between Astra International and FDG Electric
If you would invest 635.00 in Astra International Tbk on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Astra International Tbk or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. FDG Electric Vehicles
Performance |
| Timeline |
| Astra International Tbk |
| FDG Electric Vehicles |
Astra International and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and FDG Electric
The main advantage of trading using opposite Astra International and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's 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 |
| FDG Electric vs. Boston Beer | FDG Electric vs. Keurig Dr Pepper | FDG Electric vs. Vita Coco | FDG Electric vs. Willamette Valley Vineyards |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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