Correlation Between Astera Labs, and Lixil Group
Can any of the company-specific risk be diversified away by investing in both Astera Labs, and Lixil Group 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 Lixil Group 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 Lixil Group Corp, you can compare the effects of market volatilities on Astera Labs, and Lixil Group 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 Lixil Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astera Labs, and Lixil Group.
Diversification Opportunities for Astera Labs, and Lixil Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astera and Lixil is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astera Labs, Common and Lixil Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixil Group Corp 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 Lixil Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixil Group Corp has no effect on the direction of Astera Labs, i.e., Astera Labs, and Lixil Group go up and down completely randomly.
Pair Corralation between Astera Labs, and Lixil Group
Given the investment horizon of 90 days Astera Labs, Common is expected to generate 4.76 times more return on investment than Lixil Group. However, Astera Labs, is 4.76 times more volatile than Lixil Group Corp. It trades about 0.24 of its potential returns per unit of risk. Lixil Group Corp is currently generating about -0.03 per unit of risk. If you would invest 4,306 in Astera Labs, Common on August 30, 2024 and sell it today you would earn a total of 5,654 from holding Astera Labs, Common or generate 131.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astera Labs, Common vs. Lixil Group Corp
Performance |
| Timeline |
| Astera Labs, Common |
| Lixil Group Corp |
Astera Labs, and Lixil Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astera Labs, and Lixil Group
The main advantage of trading using opposite Astera Labs, and Lixil Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astera Labs, position performs unexpectedly, Lixil Group 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 Lixil Group will offset losses from the drop in Lixil Group's long position.| Astera Labs, vs. Chester Mining | Astera Labs, vs. Lion One Metals | Astera Labs, vs. Barrick Gold Corp | Astera Labs, vs. Playa Hotels Resorts |
| Lixil Group vs. Masco | Lixil Group vs. Carrier Global Corp | Lixil Group vs. Daikin IndustriesLtd | Lixil Group vs. Lennox International |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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