Correlation Between Astra International and Track
Can any of the company-specific risk be diversified away by investing in both Astra International and Track 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 Track 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 Track Group, you can compare the effects of market volatilities on Astra International and Track 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 Track. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Track.
Diversification Opportunities for Astra International and Track
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Track is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Track Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Track 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 Track. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Track Group has no effect on the direction of Astra International i.e., Astra International and Track go up and down completely randomly.
Pair Corralation between Astra International and Track
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Track. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 3.44 times less risky than Track. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Track Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Track Group on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Track Group or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Track Group
Performance |
| Timeline |
| Astra International Tbk |
| Track Group |
Astra International and Track Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Track
The main advantage of trading using opposite Astra International and Track positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Track 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 Track will offset losses from the drop in Track's long position.| Astra International vs. BLOCK INC | Astra International vs. Commander Resources | Astra International vs. PetMed Express | Astra International vs. Aspen Technology |
| Track vs. Spectris plc | Track vs. Sono Tek Corp | Track vs. Genasys | Track vs. Sensata Technologies Holding |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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