Correlation Between Astra International and Man Wah
Can any of the company-specific risk be diversified away by investing in both Astra International and Man Wah 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 Man Wah 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 Man Wah Holdings, you can compare the effects of market volatilities on Astra International and Man Wah 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 Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Man Wah.
Diversification Opportunities for Astra International and Man Wah
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Man is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah 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 Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of Astra International i.e., Astra International and Man Wah go up and down completely randomly.
Pair Corralation between Astra International and Man Wah
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Man Wah. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 3.23 times less risky than Man Wah. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Man Wah Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,763 in Man Wah Holdings on August 27, 2024 and sell it today you would lose (533.00) from holding Man Wah Holdings or give up 30.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.75% |
| Values | Daily Returns |
Astra International Tbk vs. Man Wah Holdings
Performance |
| Timeline |
| Astra International Tbk |
| Man Wah Holdings |
Astra International and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Man Wah
The main advantage of trading using opposite Astra International and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Man Wah vs. La Z Boy Incorporated | Man Wah vs. MasterBrand | Man Wah vs. MillerKnoll | Man Wah vs. Flexsteel Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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