Correlation Between ASTRA INTERNATIONAL and WINMARK
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and WINMARK 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 WINMARK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and WINMARK, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and WINMARK 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 WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and WINMARK.
Diversification Opportunities for ASTRA INTERNATIONAL and WINMARK
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTRA and WINMARK is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK 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 are associated (or correlated) with WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and WINMARK go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and WINMARK
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 1.34 times less return on investment than WINMARK. In addition to that, ASTRA INTERNATIONAL is 1.45 times more volatile than WINMARK. It trades about 0.12 of its total potential returns per unit of risk. WINMARK is currently generating about 0.23 per unit of volatility. If you would invest 35,120 in WINMARK on September 4, 2024 and sell it today you would earn a total of 3,880 from holding WINMARK or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. WINMARK
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| WINMARK |
ASTRA INTERNATIONAL and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and WINMARK
The main advantage of trading using opposite ASTRA INTERNATIONAL and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| ASTRA INTERNATIONAL vs. TOTAL GABON | ASTRA INTERNATIONAL vs. Walgreens Boots Alliance | ASTRA INTERNATIONAL vs. Peak Resources Limited |
| WINMARK vs. SALESFORCE INC CDR | WINMARK vs. AOI Electronics Co | WINMARK vs. STORE ELECTRONIC | WINMARK vs. GungHo Online Entertainment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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