Correlation Between Astra International and B Riley
Can any of the company-specific risk be diversified away by investing in both Astra International and B Riley 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 B Riley 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 B Riley Financial, you can compare the effects of market volatilities on Astra International and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and B Riley.
Diversification Opportunities for Astra International and B Riley
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and RILYO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Astra International i.e., Astra International and B Riley go up and down completely randomly.
Pair Corralation between Astra International and B Riley
If you would invest 607.00 in Astra International Tbk on November 5, 2024 and sell it today you would lose (1.00) from holding Astra International Tbk or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Astra International Tbk vs. B Riley Financial
Performance |
| Timeline |
| Astra International Tbk |
| B Riley Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and B Riley
The main advantage of trading using opposite Astra International and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial |
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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