Correlation Between Astra International and ACI Worldwide

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Astra International and ACI Worldwide 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 ACI Worldwide 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 ACI Worldwide, you can compare the effects of market volatilities on Astra International and ACI Worldwide 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 ACI Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and ACI Worldwide.

Diversification Opportunities for Astra International and ACI Worldwide

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Astra and ACI Worldwide is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and ACI Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACI Worldwide 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 ACI Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACI Worldwide has no effect on the direction of Astra International i.e., Astra International and ACI Worldwide go up and down completely randomly.

Pair Corralation between Astra International and ACI Worldwide

Assuming the 90 days horizon Astra International Tbk is expected to under-perform the ACI Worldwide. But the otc pink sheet apears to be less risky and, when comparing its historical volatility, Astra International Tbk is 1.09 times less risky than ACI Worldwide. The otc pink sheet trades about -0.26 of its potential returns per unit of risk. The ACI Worldwide is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,098  in ACI Worldwide on September 7, 2022 and sell it today you would earn a total of  18.00  from holding ACI Worldwide or generate 0.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Astra International Tbk  vs.  ACI Worldwide

 Performance (%) 
       Timeline  
Astra International Tbk 
Astra Performance
0 of 100
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 weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for the company investors.

Astra Price Channel

ACI Worldwide 
ACI Worldwide Performance
0 of 100
Over the last 90 days ACI Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, ACI Worldwide is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ACI Worldwide Price Channel

Astra International and ACI Worldwide Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Astra International and ACI Worldwide

The main advantage of trading using opposite Astra International and ACI Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International position performs unexpectedly, ACI Worldwide 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 ACI Worldwide will offset losses from the drop in ACI Worldwide's long position.
Astra International vs. CyberAgent Inc ADR
Astra International vs. Integral Ad Science
Astra International vs. Network CN
Astra International vs. WPP PLC ADR
The idea behind Astra International Tbk and ACI Worldwide pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ACI Worldwide vs. British American Tobacco
ACI Worldwide vs. Imperial Brands PLC
ACI Worldwide vs. Vector Group
ACI Worldwide vs. Altria 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 CEO Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go