Correlation Between Astra International and Knightswan Acquisition
Can any of the company-specific risk be diversified away by investing in both Astra International and Knightswan Acquisition 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 Knightswan Acquisition 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 Knightswan Acquisition Corp, you can compare the effects of market volatilities on Astra International and Knightswan Acquisition 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 Knightswan Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Knightswan Acquisition.
Diversification Opportunities for Astra International and Knightswan Acquisition
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Knightswan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Knightswan Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightswan Acquisition 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 Knightswan Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightswan Acquisition has no effect on the direction of Astra International i.e., Astra International and Knightswan Acquisition go up and down completely randomly.
Pair Corralation between Astra International and Knightswan Acquisition
If you would invest 620.00 in Astra International Tbk on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Astra International Tbk or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Astra International Tbk vs. Knightswan Acquisition Corp
Performance |
| Timeline |
| Astra International Tbk |
| Knightswan Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Knightswan Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Knightswan Acquisition
The main advantage of trading using opposite Astra International and Knightswan Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Knightswan Acquisition 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 Knightswan Acquisition will offset losses from the drop in Knightswan Acquisition's long position.| Astra International vs. PT Astra International | Astra International vs. Mobileye Global Class | Astra International vs. HUMANA INC | Astra International vs. Barloworld Ltd ADR |
| Knightswan Acquisition vs. Everest Consolidator Acquisition | Knightswan Acquisition vs. PowerUp Acquisition 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |