Correlation Between Astra International and Mind Technology
Can any of the company-specific risk be diversified away by investing in both Astra International and Mind Technology 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 Mind Technology 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 Mind Technology Pref, you can compare the effects of market volatilities on Astra International and Mind Technology 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 Mind Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Mind Technology.
Diversification Opportunities for Astra International and Mind Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Mind is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Mind Technology Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology Pref 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 Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology Pref has no effect on the direction of Astra International i.e., Astra International and Mind Technology go up and down completely randomly.
Pair Corralation between Astra International and Mind Technology
If you would invest (100.00) in Mind Technology Pref on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Mind Technology Pref or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astra International Tbk vs. Mind Technology Pref
Performance |
| Timeline |
| Astra International Tbk |
| Mind Technology Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Mind Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Mind Technology
The main advantage of trading using opposite Astra International and Mind Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Mind Technology 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 Mind Technology will offset losses from the drop in Mind Technology's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| Mind Technology vs. Kraken Robotics | Mind Technology vs. SaverOne 2014 Ltd | Mind Technology vs. Focus Universal | Mind Technology vs. Nanalysis Scientific 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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