Correlation Between Astra International and First National
Can any of the company-specific risk be diversified away by investing in both Astra International and First National 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 First National 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 First National of, you can compare the effects of market volatilities on Astra International and First National 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 First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and First National.
Diversification Opportunities for Astra International and First National
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and First is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and First National of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National has no effect on the direction of Astra International i.e., Astra International and First National go up and down completely randomly.
Pair Corralation between Astra International and First National
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the First National. In addition to that, Astra International is 1.6 times more volatile than First National of. It trades about 0.0 of its total potential returns per unit of risk. First National of is currently generating about 0.07 per unit of volatility. If you would invest 1,152,838 in First National of on September 3, 2024 and sell it today you would earn a total of 57,162 from holding First National of or generate 4.96% 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. First National of
Performance |
| Timeline |
| Astra International Tbk |
| First National |
Astra International and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and First National
The main advantage of trading using opposite Astra International and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| First National vs. Washington Business Bank | First National vs. National Capital Bank | First National vs. Community Heritage Financial | First National vs. Citizens Financial Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |