Correlation Between MAVEN WIRELESS and ASTRA INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and ASTRA INTERNATIONAL 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 MAVEN WIRELESS and ASTRA INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on MAVEN WIRELESS and ASTRA INTERNATIONAL 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 MAVEN WIRELESS with a short position of ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and ASTRA INTERNATIONAL.
Diversification Opportunities for MAVEN WIRELESS and ASTRA INTERNATIONAL
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAVEN and ASTRA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and ASTRA INTERNATIONAL go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and ASTRA INTERNATIONAL
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the ASTRA INTERNATIONAL. But the stock apears to be less risky and, when comparing its historical volatility, MAVEN WIRELESS SWEDEN is 3.53 times less risky than ASTRA INTERNATIONAL. The stock trades about -0.25 of its potential returns per unit of risk. The ASTRA INTERNATIONAL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29.00 in ASTRA INTERNATIONAL on September 2, 2024 and sell it today you would earn a total of 1.00 from holding ASTRA INTERNATIONAL or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. ASTRA INTERNATIONAL
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| ASTRA INTERNATIONAL |
MAVEN WIRELESS and ASTRA INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and ASTRA INTERNATIONAL
The main advantage of trading using opposite MAVEN WIRELESS and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.| MAVEN WIRELESS vs. KIMBALL ELECTRONICS | MAVEN WIRELESS vs. Elmos Semiconductor SE | MAVEN WIRELESS vs. Benchmark Electronics | MAVEN WIRELESS vs. Fevertree Drinks PLC |
| ASTRA INTERNATIONAL vs. Pure Storage | ASTRA INTERNATIONAL vs. National Storage Affiliates | ASTRA INTERNATIONAL vs. TELES Informationstechnologien AG | ASTRA INTERNATIONAL vs. MAVEN WIRELESS SWEDEN |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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