Correlation Between Astra Energy and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Astra Energy and Kansai Electric 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 Kansai Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Energy and The Kansai Electric, you can compare the effects of market volatilities on Astra Energy and Kansai Electric 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 Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Energy and Kansai Electric.
Diversification Opportunities for Astra Energy and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra Energy and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric 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 Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of Astra Energy i.e., Astra Energy and Kansai Electric go up and down completely randomly.
Pair Corralation between Astra Energy and Kansai Electric
Given the investment horizon of 90 days Astra Energy is expected to generate 4.43 times more return on investment than Kansai Electric. However, Astra Energy is 4.43 times more volatile than The Kansai Electric. It trades about 0.03 of its potential returns per unit of risk. The Kansai Electric is currently generating about 0.11 per unit of risk. If you would invest 24.00 in Astra Energy on October 24, 2024 and sell it today you would lose (13.00) from holding Astra Energy or give up 54.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.79% |
| Values | Daily Returns |
Astra Energy vs. The Kansai Electric
Performance |
| Timeline |
| Astra Energy |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra Energy and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Energy and Kansai Electric
The main advantage of trading using opposite Astra Energy and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Energy position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric's long position.| Astra Energy vs. Constellation Energy Corp | Astra Energy vs. Verbund AG ADR | Astra Energy vs. VERBUND AG | Astra Energy vs. Orsted AS ADR |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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