Correlation Between Astra International and Santos
Can any of the company-specific risk be diversified away by investing in both Astra International and Santos 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 Santos 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 Santos Ltd ADR, you can compare the effects of market volatilities on Astra International and Santos 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 Santos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Santos.
Diversification Opportunities for Astra International and Santos
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Santos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Santos Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santos Ltd ADR 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 Santos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santos Ltd ADR has no effect on the direction of Astra International i.e., Astra International and Santos go up and down completely randomly.
Pair Corralation between Astra International and Santos
If you would invest 538.00 in Santos Ltd ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Santos Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Astra International Tbk vs. Santos Ltd ADR
Performance |
| Timeline |
| Astra International Tbk |
| Santos Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Santos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Santos
The main advantage of trading using opposite Astra International and Santos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Santos 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 Santos will offset losses from the drop in Santos' long position.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Quantumscape Corp | Astra International vs. Lear Corporation |
| Santos vs. Aker BP ASA | Santos vs. Woodside Energy Group | Santos vs. APA Corporation | Santos vs. EQT Corporation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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