Correlation Between Astra International and Ceapro
Can any of the company-specific risk be diversified away by investing in both Astra International and Ceapro 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 Ceapro 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 Ceapro Inc, you can compare the effects of market volatilities on Astra International and Ceapro 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 Ceapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Ceapro.
Diversification Opportunities for Astra International and Ceapro
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Ceapro is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Ceapro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceapro 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 Ceapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceapro Inc has no effect on the direction of Astra International i.e., Astra International and Ceapro go up and down completely randomly.
Pair Corralation between Astra International and Ceapro
Assuming the 90 days horizon Astra International is expected to generate 5450.36 times less return on investment than Ceapro. But when comparing it to its historical volatility, Astra International Tbk is 43.4 times less risky than Ceapro. It trades about 0.0 of its potential returns per unit of risk. Ceapro Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Ceapro Inc on September 2, 2024 and sell it today you would earn a total of 573.00 from holding Ceapro Inc or generate 2865.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.53% |
| Values | Daily Returns |
Astra International Tbk vs. Ceapro Inc
Performance |
| Timeline |
| Astra International Tbk |
| Ceapro Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Ceapro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Ceapro
The main advantage of trading using opposite Astra International and Ceapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Ceapro 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 Ceapro will offset losses from the drop in Ceapro's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Quantumscape Corp | Astra International vs. Lear Corporation |
| Ceapro vs. Biotron Limited | Ceapro vs. biOasis Technologies | Ceapro vs. Covalon Technologies | Ceapro vs. Mosaic Immunoengineering |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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