Correlation Between Astra International and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Astra International and Grocery Outlet 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 Grocery Outlet 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 Grocery Outlet Holding, you can compare the effects of market volatilities on Astra International and Grocery Outlet 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 Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Grocery Outlet.
Diversification Opportunities for Astra International and Grocery Outlet
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and Grocery is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding 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 Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of Astra International i.e., Astra International and Grocery Outlet go up and down completely randomly.
Pair Corralation between Astra International and Grocery Outlet
Assuming the 90 days horizon Astra International Tbk is expected to generate 0.51 times more return on investment than Grocery Outlet. However, Astra International Tbk is 1.96 times less risky than Grocery Outlet. It trades about 0.04 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about -0.03 per unit of risk. If you would invest 596.00 in Astra International Tbk on September 7, 2025 and sell it today you would earn a total of 213.00 from holding Astra International Tbk or generate 35.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra International Tbk vs. Grocery Outlet Holding
Performance |
| Timeline |
| Astra International Tbk |
| Grocery Outlet Holding |
Astra International and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Grocery Outlet
The main advantage of trading using opposite Astra International and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.| Astra International vs. DENSO | Astra International vs. Denso Corp ADR | Astra International vs. Bridgestone | Astra International vs. Bridgestone Corp ADR |
| Grocery Outlet vs. Ross Stores | Grocery Outlet vs. Burlington Stores | Grocery Outlet vs. GOME Retail Holdings | Grocery Outlet vs. NorthPoint Communications Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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