Correlation Between Astra International and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both Astra International and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining Corp, you can compare the effects of market volatilities on Astra International and Endeavour Mining 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 Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Endeavour Mining.
Diversification Opportunities for Astra International and Endeavour Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Endeavour is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of Astra International i.e., Astra International and Endeavour Mining go up and down completely randomly.
Pair Corralation between Astra International and Endeavour Mining
Assuming the 90 days horizon Astra International Tbk is expected to generate 0.74 times more return on investment than Endeavour Mining. However, Astra International Tbk is 1.36 times less risky than Endeavour Mining. It trades about 0.07 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.01 per unit of risk. If you would invest 558.00 in Astra International Tbk on February 24, 2024 and sell it today you would earn a total of 15.00 from holding Astra International Tbk or generate 2.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Astra International Tbk vs. Endeavour Mining Corp
Performance |
Timeline |
Astra International Tbk |
Endeavour Mining Corp |
Astra International and Endeavour Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astra International and Endeavour Mining
The main advantage of trading using opposite Astra International and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, Endeavour Mining 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.Astra International vs. Bridgestone Corp ADR | Astra International vs. Aptiv PLC | Astra International vs. Mobileye Global Class | Astra International vs. PT Astra International |
Endeavour Mining vs. Treasury Metals | Endeavour Mining vs. Orogen Royalties | Endeavour Mining vs. Hummingbird Resources PLC | Endeavour Mining vs. Knife River |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |