Correlation Between Astra International and Tudor Gold

Can any of the company-specific risk be diversified away by investing in both Astra International and Tudor Gold 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 Tudor Gold 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 Tudor Gold Corp, you can compare the effects of market volatilities on Astra International and Tudor Gold 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 Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Tudor Gold.

Diversification Opportunities for Astra International and Tudor Gold

-0.13

Correlation Coefficient

Astra International  Tudor Gold

Good diversification

The 3 months correlation between Astra and Tudor is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Tudor Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tudor Gold 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 Tudor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tudor Gold Corp has no effect on the direction of Astra International i.e., Astra International and Tudor Gold go up and down completely randomly.

Pair Corralation between Astra International and Tudor Gold

Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Tudor Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 1.63 times less risky than Tudor Gold. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Tudor Gold Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Tudor Gold Corp on December 29, 2024 and sell it today you would lose (1.00) from holding Tudor Gold Corp or give up 2.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Astra International Tbk  vs.  Tudor Gold Corp

Astra International Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astra International Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Astra International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tudor Gold Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Tudor Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tudor Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Astra International and Tudor Gold

The main advantage of trading using opposite Astra International and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Tudor Gold 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 Tudor Gold will offset losses from the drop in Tudor Gold's long position.

The idea behind Astra International Tbk and Tudor Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.