Correlation Between Astra International and Gamehost
Can any of the company-specific risk be diversified away by investing in both Astra International and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on Astra International and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Gamehost.
Diversification Opportunities for Astra International and Gamehost
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astra and Gamehost is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Astra International i.e., Astra International and Gamehost go up and down completely randomly.
Pair Corralation between Astra International and Gamehost
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Gamehost. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 2.46 times less risky than Gamehost. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Gamehost is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Gamehost on November 9, 2024 and sell it today you would earn a total of 49.00 from holding Gamehost or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.22% |
| Values | Daily Returns |
Astra International Tbk vs. Gamehost
Performance |
| Timeline |
| Astra International Tbk |
| Gamehost |
Astra International and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Gamehost
The main advantage of trading using opposite Astra International and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Gamehost vs. MagnaChip Semiconductor | Gamehost vs. Tower Semiconductor | Gamehost vs. BW Offshore Limited | Gamehost vs. Qorvo 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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