Correlation Between Astra Energy and SolarWindow Technologies
Can any of the company-specific risk be diversified away by investing in both Astra Energy and SolarWindow Technologies 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 SolarWindow Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Energy and SolarWindow Technologies, you can compare the effects of market volatilities on Astra Energy and SolarWindow Technologies 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 SolarWindow Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Energy and SolarWindow Technologies.
Diversification Opportunities for Astra Energy and SolarWindow Technologies
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Astra and SolarWindow is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astra Energy and SolarWindow Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarWindow Technologies 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 SolarWindow Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarWindow Technologies has no effect on the direction of Astra Energy i.e., Astra Energy and SolarWindow Technologies go up and down completely randomly.
Pair Corralation between Astra Energy and SolarWindow Technologies
Given the investment horizon of 90 days Astra Energy is expected to generate 0.66 times more return on investment than SolarWindow Technologies. However, Astra Energy is 1.51 times less risky than SolarWindow Technologies. It trades about -0.04 of its potential returns per unit of risk. SolarWindow Technologies is currently generating about -0.05 per unit of risk. If you would invest 12.00 in Astra Energy on August 27, 2024 and sell it today you would lose (1.00) from holding Astra Energy or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Energy vs. SolarWindow Technologies
Performance |
| Timeline |
| Astra Energy |
| SolarWindow Technologies |
Astra Energy and SolarWindow Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Energy and SolarWindow Technologies
The main advantage of trading using opposite Astra Energy and SolarWindow Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Energy position performs unexpectedly, SolarWindow Technologies 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 SolarWindow Technologies will offset losses from the drop in SolarWindow Technologies' 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 |
| SolarWindow Technologies vs. Boxlight Corp Class | SolarWindow Technologies vs. Siyata Mobile | SolarWindow Technologies vs. ClearOne | SolarWindow Technologies vs. HUMANA INC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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