Correlation Between Astra International and Federal Home
Can any of the company-specific risk be diversified away by investing in both Astra International and Federal Home 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 Federal Home 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 Federal Home Loan, you can compare the effects of market volatilities on Astra International and Federal Home 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 Federal Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Federal Home.
Diversification Opportunities for Astra International and Federal Home
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Federal is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Federal Home Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Home Loan 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 Federal Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Home Loan has no effect on the direction of Astra International i.e., Astra International and Federal Home go up and down completely randomly.
Pair Corralation between Astra International and Federal Home
Assuming the 90 days horizon Astra International Tbk is expected to generate 0.79 times more return on investment than Federal Home. However, Astra International Tbk is 1.26 times less risky than Federal Home. It trades about 0.0 of its potential returns per unit of risk. Federal Home Loan is currently generating about -0.16 per unit of risk. If you would invest 608.00 in Astra International Tbk on November 3, 2024 and sell it today you would lose (2.00) from holding Astra International Tbk or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Federal Home Loan
Performance |
| Timeline |
| Astra International Tbk |
| Federal Home Loan |
Astra International and Federal Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Federal Home
The main advantage of trading using opposite Astra International and Federal Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Federal Home 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 Federal Home will offset losses from the drop in Federal Home's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Federal Home vs. Federal Home Loan | Federal Home vs. Federal Home Loan | Federal Home vs. Federal Home Loan | Federal Home vs. Federal Home Loan |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |