Correlation Between ASTRA INTERNATIONAL and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and TOTAL GABON 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 TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and TOTAL GABON, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and TOTAL GABON 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 TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and TOTAL GABON.
Diversification Opportunities for ASTRA INTERNATIONAL and TOTAL GABON
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASTRA and TOTAL is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON 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 TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and TOTAL GABON go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and TOTAL GABON
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 2.12 times less return on investment than TOTAL GABON. But when comparing it to its historical volatility, ASTRA INTERNATIONAL is 1.35 times less risky than TOTAL GABON. It trades about 0.12 of its potential returns per unit of risk. TOTAL GABON is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 15,800 in TOTAL GABON on September 4, 2024 and sell it today you would earn a total of 2,550 from holding TOTAL GABON or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. TOTAL GABON
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| TOTAL GABON |
ASTRA INTERNATIONAL and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and TOTAL GABON
The main advantage of trading using opposite ASTRA INTERNATIONAL and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, TOTAL GABON 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 TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| ASTRA INTERNATIONAL vs. TOTAL GABON | ASTRA INTERNATIONAL vs. Walgreens Boots Alliance | ASTRA INTERNATIONAL vs. Peak Resources Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |