Correlation Between Astra International and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Astra International and INFICON Holding 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 INFICON Holding 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 INFICON Holding AG, you can compare the effects of market volatilities on Astra International and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and INFICON Holding.
Diversification Opportunities for Astra International and INFICON Holding
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and INFICON is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Astra International i.e., Astra International and INFICON Holding go up and down completely randomly.
Pair Corralation between Astra International and INFICON Holding
Assuming the 90 days horizon Astra International Tbk is expected to generate 0.44 times more return on investment than INFICON Holding. However, Astra International Tbk is 2.28 times less risky than INFICON Holding. It trades about 0.04 of its potential returns per unit of risk. INFICON Holding AG is currently generating about -0.21 per unit of risk. If you would invest 635.00 in Astra International Tbk on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Astra International Tbk or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astra International Tbk vs. INFICON Holding AG
Performance |
| Timeline |
| Astra International Tbk |
| INFICON Holding AG |
Astra International and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and INFICON Holding
The main advantage of trading using opposite Astra International and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| INFICON Holding vs. Copa Holdings SA | INFICON Holding vs. United Airlines Holdings | INFICON Holding vs. Delta Air Lines | INFICON Holding vs. SkyWest |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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