Correlation Between Astra Energy and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both Astra Energy and Fusion Fuel 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 Fusion Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Energy and Fusion Fuel Green, you can compare the effects of market volatilities on Astra Energy and Fusion Fuel 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 Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Energy and Fusion Fuel.
Diversification Opportunities for Astra Energy and Fusion Fuel
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astra and Fusion is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Astra Energy and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green 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 Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Astra Energy i.e., Astra Energy and Fusion Fuel go up and down completely randomly.
Pair Corralation between Astra Energy and Fusion Fuel
Given the investment horizon of 90 days Astra Energy is expected to generate 1.5 times less return on investment than Fusion Fuel. But when comparing it to its historical volatility, Astra Energy is 1.73 times less risky than Fusion Fuel. It trades about 0.03 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Fusion Fuel Green on August 24, 2024 and sell it today you would lose (137.30) from holding Fusion Fuel Green or give up 98.78% 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. Fusion Fuel Green
Performance |
| Timeline |
| Astra Energy |
| Fusion Fuel Green |
Astra Energy and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Energy and Fusion Fuel
The main advantage of trading using opposite Astra Energy and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Energy position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| Astra Energy vs. Constellation Energy Corp | Astra Energy vs. Verbund AG ADR | Astra Energy vs. Orsted AS ADR | Astra Energy vs. Orsted AS |
| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |