Correlation Between Astera Labs, and Café Serendipity
Can any of the company-specific risk be diversified away by investing in both Astera Labs, and Café Serendipity 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 Astera Labs, and Café Serendipity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astera Labs, Common and Caf Serendipity Holdings, you can compare the effects of market volatilities on Astera Labs, and Café Serendipity 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 Astera Labs, with a short position of Café Serendipity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astera Labs, and Café Serendipity.
Diversification Opportunities for Astera Labs, and Café Serendipity
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astera and Café is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Astera Labs, Common and Caf Serendipity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caf Serendipity Holdings and Astera Labs, 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 Astera Labs, Common are associated (or correlated) with Café Serendipity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caf Serendipity Holdings has no effect on the direction of Astera Labs, i.e., Astera Labs, and Café Serendipity go up and down completely randomly.
Pair Corralation between Astera Labs, and Café Serendipity
Given the investment horizon of 90 days Astera Labs, is expected to generate 2.83 times less return on investment than Café Serendipity. But when comparing it to its historical volatility, Astera Labs, Common is 2.44 times less risky than Café Serendipity. It trades about 0.18 of its potential returns per unit of risk. Caf Serendipity Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Caf Serendipity Holdings on August 30, 2024 and sell it today you would earn a total of 0.01 from holding Caf Serendipity Holdings or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Astera Labs, Common vs. Caf Serendipity Holdings
Performance |
| Timeline |
| Astera Labs, Common |
| Caf Serendipity Holdings |
Astera Labs, and Café Serendipity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astera Labs, and Café Serendipity
The main advantage of trading using opposite Astera Labs, and Café Serendipity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astera Labs, position performs unexpectedly, Café Serendipity 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 Café Serendipity will offset losses from the drop in Café Serendipity's long position.| Astera Labs, vs. NextNav Warrant | Astera Labs, vs. Black Hills | Astera Labs, vs. Vistra Energy Corp | Astera Labs, vs. Joint Stock |
| Café Serendipity vs. China Jo Jo Drugstores | Café Serendipity vs. SunLink Health Systems | Café Serendipity vs. Leafly Holdings | Café Serendipity vs. PetMed Express |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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