Correlation Between Astra International and MCAN Mortgage
Can any of the company-specific risk be diversified away by investing in both Astra International and MCAN Mortgage 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 MCAN Mortgage 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 MCAN Mortgage, you can compare the effects of market volatilities on Astra International and MCAN Mortgage 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 MCAN Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and MCAN Mortgage.
Diversification Opportunities for Astra International and MCAN Mortgage
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and MCAN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and MCAN Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCAN Mortgage 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 MCAN Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCAN Mortgage has no effect on the direction of Astra International i.e., Astra International and MCAN Mortgage go up and down completely randomly.
Pair Corralation between Astra International and MCAN Mortgage
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the MCAN Mortgage. In addition to that, Astra International is 1.85 times more volatile than MCAN Mortgage. It trades about -0.04 of its total potential returns per unit of risk. MCAN Mortgage is currently generating about 0.1 per unit of volatility. If you would invest 1,356 in MCAN Mortgage on September 4, 2024 and sell it today you would earn a total of 39.00 from holding MCAN Mortgage or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. MCAN Mortgage
Performance |
| Timeline |
| Astra International Tbk |
| MCAN Mortgage |
Astra International and MCAN Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and MCAN Mortgage
The main advantage of trading using opposite Astra International and MCAN Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, MCAN Mortgage 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 MCAN Mortgage will offset losses from the drop in MCAN Mortgage's long position.| Astra International vs. OppFi Inc | Astra International vs. Fortinet | Astra International vs. Brera Holdings PLC | Astra International vs. MetLife |
| MCAN Mortgage vs. Western Asset Global | MCAN Mortgage vs. Invesco Trust For | MCAN Mortgage vs. Logan Ridge Finance | MCAN Mortgage vs. Invesco Advantage MIT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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