Correlation Between ASTRA INTERNATIONAL and SUNCOKE ENERGY
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and SUNCOKE ENERGY 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 SUNCOKE ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and SUNCOKE ENERGY, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and SUNCOKE ENERGY 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 SUNCOKE ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and SUNCOKE ENERGY.
Diversification Opportunities for ASTRA INTERNATIONAL and SUNCOKE ENERGY
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTRA and SUNCOKE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and SUNCOKE ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNCOKE ENERGY 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 SUNCOKE ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNCOKE ENERGY has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and SUNCOKE ENERGY go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and SUNCOKE ENERGY
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 7.1 times less return on investment than SUNCOKE ENERGY. But when comparing it to its historical volatility, ASTRA INTERNATIONAL is 1.26 times less risky than SUNCOKE ENERGY. It trades about 0.01 of its potential returns per unit of risk. SUNCOKE ENERGY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 855.00 in SUNCOKE ENERGY on September 12, 2024 and sell it today you would earn a total of 305.00 from holding SUNCOKE ENERGY or generate 35.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. SUNCOKE ENERGY
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| SUNCOKE ENERGY |
ASTRA INTERNATIONAL and SUNCOKE ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and SUNCOKE ENERGY
The main advantage of trading using opposite ASTRA INTERNATIONAL and SUNCOKE ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, SUNCOKE ENERGY 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 SUNCOKE ENERGY will offset losses from the drop in SUNCOKE ENERGY's long position.| ASTRA INTERNATIONAL vs. Gold Road Resources | ASTRA INTERNATIONAL vs. Eidesvik Offshore ASA | ASTRA INTERNATIONAL vs. EIDESVIK OFFSHORE NK | ASTRA INTERNATIONAL vs. CSSC Offshore Marine |
| SUNCOKE ENERGY vs. Lion One Metals | SUNCOKE ENERGY vs. Aluminum of | SUNCOKE ENERGY vs. ULTRA CLEAN HLDGS | SUNCOKE ENERGY vs. GUARDANT HEALTH CL |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |