Correlation Between ASTRA INTERNATIONAL and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and SPDR Gold 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 SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and SPDR Gold Shares, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and SPDR Gold 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 SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and SPDR Gold.
Diversification Opportunities for ASTRA INTERNATIONAL and SPDR Gold
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTRA and SPDR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and SPDR Gold Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Shares 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 SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Shares has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and SPDR Gold go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and SPDR Gold
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 2.33 times more return on investment than SPDR Gold. However, ASTRA INTERNATIONAL is 2.33 times more volatile than SPDR Gold Shares. It trades about 0.07 of its potential returns per unit of risk. SPDR Gold Shares is currently generating about 0.13 per unit of risk. If you would invest 25.00 in ASTRA INTERNATIONAL on September 2, 2024 and sell it today you would earn a total of 5.00 from holding ASTRA INTERNATIONAL or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. SPDR Gold Shares
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| SPDR Gold Shares |
ASTRA INTERNATIONAL and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and SPDR Gold
The main advantage of trading using opposite ASTRA INTERNATIONAL and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.| ASTRA INTERNATIONAL vs. SIVERS SEMICONDUCTORS AB | ASTRA INTERNATIONAL vs. Darden Restaurants | ASTRA INTERNATIONAL vs. Reliance Steel Aluminum | ASTRA INTERNATIONAL vs. Q2M Managementberatung AG |
| SPDR Gold vs. Summit Materials | SPDR Gold vs. Rayonier Advanced Materials | SPDR Gold vs. Applied Materials | SPDR Gold vs. EAGLE MATERIALS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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