Correlation Between Astra International and Arlington Asset
Can any of the company-specific risk be diversified away by investing in both Astra International and Arlington Asset 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 Arlington Asset 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 Arlington Asset Investment, you can compare the effects of market volatilities on Astra International and Arlington Asset 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 Arlington Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Arlington Asset.
Diversification Opportunities for Astra International and Arlington Asset
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Arlington is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Arlington Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arlington Asset Inve 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 Arlington Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arlington Asset Inve has no effect on the direction of Astra International i.e., Astra International and Arlington Asset go up and down completely randomly.
Pair Corralation between Astra International and Arlington Asset
If you would invest 638.00 in Astra International Tbk on September 7, 2024 and sell it today you would lose (3.00) from holding Astra International Tbk or give up 0.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 0.0% |
Values | Daily Returns |
Astra International Tbk vs. Arlington Asset Investment
Performance |
Timeline |
Astra International Tbk |
Arlington Asset Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Arlington Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astra International and Arlington Asset
The main advantage of trading using opposite Astra International and Arlington Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Arlington Asset 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 Arlington Asset will offset losses from the drop in Arlington Asset's long position.Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. Cherry Hill Mortgage | Arlington Asset vs. Nexpoint Real Estate |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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