Correlation Between Astra International and NFI
Can any of the company-specific risk be diversified away by investing in both Astra International and NFI 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 NFI 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 NFI Group, you can compare the effects of market volatilities on Astra International and NFI 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 NFI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and NFI.
Diversification Opportunities for Astra International and NFI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and NFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and NFI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFI Group 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 NFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFI Group has no effect on the direction of Astra International i.e., Astra International and NFI go up and down completely randomly.
Pair Corralation between Astra International and NFI
If you would invest 0.00 in NFI Group on November 2, 2024 and sell it today you would earn a total of 0.00 from holding NFI Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Astra International Tbk vs. NFI Group
Performance |
| Timeline |
| Astra International Tbk |
| NFI Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and NFI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and NFI
The main advantage of trading using opposite Astra International and NFI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, NFI 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 NFI will offset losses from the drop in NFI's long position.| Astra International vs. Sumitomo Chemical Co | Astra International vs. AB SKF | Astra International vs. Adecco Group | Astra International vs. Nitto Denko Corp |
| NFI vs. Zapp Electric Vehicles | NFI vs. Guangzhou Automobile Group | NFI vs. Exor NV | NFI vs. Aston Martin Lagonda |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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