Correlation Between Astra International and Altra Industrial

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Can any of the company-specific risk be diversified away by investing in both Astra International and Altra Industrial 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 Altra Industrial 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 Altra Industrial Motion, you can compare the effects of market volatilities on Astra International and Altra Industrial 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 Altra Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and Altra Industrial.

Diversification Opportunities for Astra International and Altra Industrial

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Astra and Altra is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and Altra Industrial Motion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altra Industrial Motion 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 Altra Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altra Industrial Motion has no effect on the direction of Astra International i.e., Astra International and Altra Industrial go up and down completely randomly.

Pair Corralation between Astra International and Altra Industrial

If you would invest  6,198  in Altra Industrial Motion on March 6, 2024 and sell it today you would earn a total of  0.00  from holding Altra Industrial Motion or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy1.61%
ValuesDaily Returns

Astra International Tbk  vs.  Altra Industrial Motion

 Performance 
       Timeline  
Astra International Tbk 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Astra International Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Altra Industrial Motion 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Altra Industrial Motion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Altra Industrial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Astra International and Altra Industrial Volatility Contrast

   Predicted Return Density   
       Returns  
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