Correlation Between ASTRA INTERNATIONAL and WHIRLPOOL
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and WHIRLPOOL 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 WHIRLPOOL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and WHIRLPOOL, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and WHIRLPOOL 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 WHIRLPOOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and WHIRLPOOL.
Diversification Opportunities for ASTRA INTERNATIONAL and WHIRLPOOL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTRA and WHIRLPOOL is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and WHIRLPOOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHIRLPOOL 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 WHIRLPOOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHIRLPOOL has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and WHIRLPOOL go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and WHIRLPOOL
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 1.36 times less return on investment than WHIRLPOOL. In addition to that, ASTRA INTERNATIONAL is 1.53 times more volatile than WHIRLPOOL. It trades about 0.12 of its total potential returns per unit of risk. WHIRLPOOL is currently generating about 0.25 per unit of volatility. If you would invest 9,510 in WHIRLPOOL on September 4, 2024 and sell it today you would earn a total of 1,080 from holding WHIRLPOOL or generate 11.36% 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. WHIRLPOOL
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| WHIRLPOOL |
ASTRA INTERNATIONAL and WHIRLPOOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and WHIRLPOOL
The main advantage of trading using opposite ASTRA INTERNATIONAL and WHIRLPOOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, WHIRLPOOL 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 WHIRLPOOL will offset losses from the drop in WHIRLPOOL's long position.| ASTRA INTERNATIONAL vs. TOTAL GABON | ASTRA INTERNATIONAL vs. Walgreens Boots Alliance | ASTRA INTERNATIONAL vs. Peak Resources Limited |
| WHIRLPOOL vs. KAUFMAN ET BROAD | WHIRLPOOL vs. Gold Road Resources | WHIRLPOOL vs. KENNAMETAL INC | WHIRLPOOL vs. GALENA MINING LTD |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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