Correlation Between Astra Energy and Atlantic Wind
Can any of the company-specific risk be diversified away by investing in both Astra Energy and Atlantic Wind 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 Energy and Atlantic Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Energy and Atlantic Wind Solar, you can compare the effects of market volatilities on Astra Energy and Atlantic Wind 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 Energy with a short position of Atlantic Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Energy and Atlantic Wind.
Diversification Opportunities for Astra Energy and Atlantic Wind
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astra and Atlantic is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Astra Energy and Atlantic Wind Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Wind Solar and Astra Energy 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 Energy are associated (or correlated) with Atlantic Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Wind Solar has no effect on the direction of Astra Energy i.e., Astra Energy and Atlantic Wind go up and down completely randomly.
Pair Corralation between Astra Energy and Atlantic Wind
Given the investment horizon of 90 days Astra Energy is expected to generate 1.11 times more return on investment than Atlantic Wind. However, Astra Energy is 1.11 times more volatile than Atlantic Wind Solar. It trades about 0.04 of its potential returns per unit of risk. Atlantic Wind Solar is currently generating about 0.03 per unit of risk. If you would invest 27.00 in Astra Energy on August 27, 2024 and sell it today you would lose (16.00) from holding Astra Energy or give up 59.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Energy vs. Atlantic Wind Solar
Performance |
| Timeline |
| Astra Energy |
| Atlantic Wind Solar |
Astra Energy and Atlantic Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Energy and Atlantic Wind
The main advantage of trading using opposite Astra Energy and Atlantic Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Energy position performs unexpectedly, Atlantic Wind 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 Atlantic Wind will offset losses from the drop in Atlantic Wind's long position.| Astra Energy vs. Alternus Energy Group | Astra Energy vs. American Security Resources | Astra Energy vs. Carnegie Clean Energy | Astra Energy vs. Altius Renewable Royalties |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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