Correlation Between Astra International and Boosh Plant
Can any of the company-specific risk be diversified away by investing in both Astra International and Boosh Plant 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 Boosh Plant 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 Boosh Plant Based Brands, you can compare the effects of market volatilities on Astra International and Boosh Plant 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 Boosh Plant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Boosh Plant.
Diversification Opportunities for Astra International and Boosh Plant
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Boosh is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Boosh Plant Based Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boosh Plant Based 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 Boosh Plant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boosh Plant Based has no effect on the direction of Astra International i.e., Astra International and Boosh Plant go up and down completely randomly.
Pair Corralation between Astra International and Boosh Plant
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the Boosh Plant. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 17.38 times less risky than Boosh Plant. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Boosh Plant Based Brands is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 0.18 in Boosh Plant Based Brands on September 30, 2024 and sell it today you would earn a total of 0.82 from holding Boosh Plant Based Brands or generate 455.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Astra International Tbk vs. Boosh Plant Based Brands
Performance |
Timeline |
Astra International Tbk |
Boosh Plant Based |
Astra International and Boosh Plant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astra International and Boosh Plant
The main advantage of trading using opposite Astra International and Boosh Plant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Boosh Plant 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 Boosh Plant will offset losses from the drop in Boosh Plant's long position.Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
Boosh Plant vs. Yuenglings Ice Cream | Boosh Plant vs. Bit Origin | Boosh Plant vs. Blue Star Foods | Boosh Plant vs. Better Choice |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |