Correlation Between ASTRA INTERNATIONAL and INTRA ENERGY
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL and INTRA 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 INTRA 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 INTRA ENERGY, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and INTRA 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 INTRA ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and INTRA ENERGY.
Diversification Opportunities for ASTRA INTERNATIONAL and INTRA ENERGY
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASTRA and INTRA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and INTRA ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTRA 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 INTRA ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTRA ENERGY has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and INTRA ENERGY go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and INTRA ENERGY
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 0.89 times more return on investment than INTRA ENERGY. However, ASTRA INTERNATIONAL is 1.12 times less risky than INTRA ENERGY. It trades about 0.03 of its potential returns per unit of risk. INTRA ENERGY is currently generating about 0.01 per unit of risk. If you would invest 29.00 in ASTRA INTERNATIONAL on September 2, 2024 and sell it today you would earn a total of 1.00 from holding ASTRA INTERNATIONAL or generate 3.45% 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. INTRA ENERGY
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| INTRA ENERGY |
ASTRA INTERNATIONAL and INTRA ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and INTRA ENERGY
The main advantage of trading using opposite ASTRA INTERNATIONAL and INTRA ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL position performs unexpectedly, INTRA 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 INTRA ENERGY will offset losses from the drop in INTRA ENERGY's long position.| ASTRA INTERNATIONAL vs. Pure Storage | ASTRA INTERNATIONAL vs. National Storage Affiliates | ASTRA INTERNATIONAL vs. TELES Informationstechnologien AG | ASTRA INTERNATIONAL vs. MAVEN WIRELESS SWEDEN |
| INTRA ENERGY vs. NTG Nordic Transport | INTRA ENERGY vs. TITANIUM TRANSPORTGROUP | INTRA ENERGY vs. Broadcom | INTRA ENERGY vs. Ares Management Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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