Correlation Between Astra International and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Astra International and Coronado Global 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 Coronado Global 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 Coronado Global Resources, you can compare the effects of market volatilities on Astra International and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Coronado Global.
Diversification Opportunities for Astra International and Coronado Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astra and Coronado is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Astra International i.e., Astra International and Coronado Global go up and down completely randomly.
Pair Corralation between Astra International and Coronado Global
Assuming the 90 days horizon Astra International Tbk is expected to generate 0.65 times more return on investment than Coronado Global. However, Astra International Tbk is 1.54 times less risky than Coronado Global. It trades about -0.02 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.09 per unit of risk. If you would invest 653.00 in Astra International Tbk on October 25, 2024 and sell it today you would lose (28.00) from holding Astra International Tbk or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Astra International Tbk vs. Coronado Global Resources
Performance |
| Timeline |
| Astra International Tbk |
| Coronado Global Resources |
Astra International and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Coronado Global
The main advantage of trading using opposite Astra International and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Now Inc | Coronado Global vs. Oracle | Coronado Global vs. Tegna Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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