Correlation Between Astra International and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both Astra International and Xenetic Biosciences 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 Xenetic Biosciences 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 Xenetic Biosciences, you can compare the effects of market volatilities on Astra International and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Xenetic Biosciences.
Diversification Opportunities for Astra International and Xenetic Biosciences
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Xenetic is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of Astra International i.e., Astra International and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between Astra International and Xenetic Biosciences
If you would invest 639.00 in Astra International Tbk on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Astra International Tbk or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Astra International Tbk vs. Xenetic Biosciences
Performance |
Timeline |
Astra International Tbk |
Xenetic Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra International and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astra International and Xenetic Biosciences
The main advantage of trading using opposite Astra International and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.Astra International vs. PT Astra International | Astra International vs. Mobileye Global Class | Astra International vs. HUMANA INC | Astra International vs. Barloworld Ltd ADR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |