Correlation Between Astra International and Andretti Acquisition
Can any of the company-specific risk be diversified away by investing in both Astra International and Andretti Acquisition 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 Andretti Acquisition 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 Andretti Acquisition Corp, you can compare the effects of market volatilities on Astra International and Andretti Acquisition 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 Andretti Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Andretti Acquisition.
Diversification Opportunities for Astra International and Andretti Acquisition
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Andretti is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Andretti Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andretti Acquisition Corp 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 Andretti Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andretti Acquisition Corp has no effect on the direction of Astra International i.e., Astra International and Andretti Acquisition go up and down completely randomly.
Pair Corralation between Astra International and Andretti Acquisition
If you would invest 552.00 in Astra International Tbk on September 5, 2024 and sell it today you would earn a total of 76.00 from holding Astra International Tbk or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Astra International Tbk vs. Andretti Acquisition Corp
Performance |
| Timeline |
| Astra International Tbk |
| Andretti Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Andretti Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Andretti Acquisition
The main advantage of trading using opposite Astra International and Andretti Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Andretti Acquisition 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 Andretti Acquisition will offset losses from the drop in Andretti Acquisition's long position.| Astra International vs. OppFi Inc | Astra International vs. Fortinet | Astra International vs. Brera Holdings PLC | Astra International vs. MetLife |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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