Correlation Between Astra International and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both Astra International and Landcadia Holdings 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 Landcadia Holdings 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 Landcadia Holdings II, you can compare the effects of market volatilities on Astra International and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Landcadia Holdings.
Diversification Opportunities for Astra International and Landcadia Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Landcadia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of Astra International i.e., Astra International and Landcadia Holdings go up and down completely randomly.
Pair Corralation between Astra International and Landcadia Holdings
If you would invest 554.00 in Astra International Tbk on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Astra International Tbk or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Astra International Tbk vs. Landcadia Holdings II
Performance |
| Timeline |
| Astra International Tbk |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Landcadia Holdings
The main advantage of trading using opposite Astra International and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Landcadia Holdings vs. Meiwu Technology Co | Landcadia Holdings vs. MGIC Investment Corp | Landcadia Holdings vs. LB Foster | Landcadia Holdings vs. Employers Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |