Correlation Between Astra International and Vertu Motors
Can any of the company-specific risk be diversified away by investing in both Astra International and Vertu Motors 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 Vertu Motors 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 Vertu Motors plc, you can compare the effects of market volatilities on Astra International and Vertu Motors 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 Vertu Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Vertu Motors.
Diversification Opportunities for Astra International and Vertu Motors
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Vertu is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Vertu Motors plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vertu Motors plc 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 Vertu Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vertu Motors plc has no effect on the direction of Astra International i.e., Astra International and Vertu Motors go up and down completely randomly.
Pair Corralation between Astra International and Vertu Motors
Assuming the 90 days horizon Astra International Tbk is expected to generate 4.37 times more return on investment than Vertu Motors. However, Astra International is 4.37 times more volatile than Vertu Motors plc. It trades about 0.15 of its potential returns per unit of risk. Vertu Motors plc is currently generating about -0.08 per unit of risk. If you would invest 659.00 in Astra International Tbk on September 5, 2025 and sell it today you would earn a total of 129.00 from holding Astra International Tbk or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Astra International Tbk vs. Vertu Motors plc
Performance |
| Timeline |
| Astra International Tbk |
| Vertu Motors plc |
Astra International and Vertu Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and Vertu Motors
The main advantage of trading using opposite Astra International and Vertu Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Vertu Motors 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 Vertu Motors will offset losses from the drop in Vertu Motors' long position.| Astra International vs. ScanSource | Astra International vs. ACG Metals Limited | Astra International vs. Asure Software | Astra International vs. Sulliden Mining Capital |
| Vertu Motors vs. The Hanover Insurance | Vertu Motors vs. Arrow Financial | Vertu Motors vs. Mitsubishi Materials | Vertu Motors vs. Neo Performance Materials |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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