Correlation Between Astra International and OCN Old
Can any of the company-specific risk be diversified away by investing in both Astra International and OCN Old 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 OCN Old 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 OCN Old, you can compare the effects of market volatilities on Astra International and OCN Old 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 OCN Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and OCN Old.
Diversification Opportunities for Astra International and OCN Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and OCN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and OCN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCN Old 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 OCN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCN Old has no effect on the direction of Astra International i.e., Astra International and OCN Old go up and down completely randomly.
Pair Corralation between Astra International and OCN Old
If you would invest (100.00) in OCN Old on December 18, 2024 and sell it today you would earn a total of 100.00 from holding OCN Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Astra International Tbk vs. OCN Old
Performance |
Timeline |
Astra International Tbk |
OCN Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Astra International and OCN Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astra International and OCN Old
The main advantage of trading using opposite Astra International and OCN Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, OCN Old 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 OCN Old will offset losses from the drop in OCN Old's long position.Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
OCN Old vs. CNFinance Holdings | OCN Old vs. Security National Financial | OCN Old vs. Encore Capital Group | OCN Old vs. Guild Holdings Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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