Correlation Between Astron Connect and Power Financial
Can any of the company-specific risk be diversified away by investing in both Astron Connect and Power Financial 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 Astron Connect and Power Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astron Connect and Power Financial Corp, you can compare the effects of market volatilities on Astron Connect and Power Financial 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 Astron Connect with a short position of Power Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astron Connect and Power Financial.
Diversification Opportunities for Astron Connect and Power Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astron and Power is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Astron Connect and Power Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Financial Corp and Astron Connect 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 Astron Connect are associated (or correlated) with Power Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Financial Corp has no effect on the direction of Astron Connect i.e., Astron Connect and Power Financial go up and down completely randomly.
Pair Corralation between Astron Connect and Power Financial
Assuming the 90 days horizon Astron Connect is expected to generate 16.88 times more return on investment than Power Financial. However, Astron Connect is 16.88 times more volatile than Power Financial Corp. It trades about 0.09 of its potential returns per unit of risk. Power Financial Corp is currently generating about 0.09 per unit of risk. If you would invest 2.50 in Astron Connect on November 2, 2024 and sell it today you would earn a total of 3.50 from holding Astron Connect or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astron Connect vs. Power Financial Corp
Performance |
| Timeline |
| Astron Connect |
| Power Financial Corp |
Astron Connect and Power Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astron Connect and Power Financial
The main advantage of trading using opposite Astron Connect and Power Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astron Connect position performs unexpectedly, Power Financial 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 Power Financial will offset losses from the drop in Power Financial's long position.| Astron Connect vs. Western Investment | Astron Connect vs. Atrium Mortgage Investment | Astron Connect vs. Westshore Terminals Investment | Astron Connect vs. Partners Value Investments |
| Power Financial vs. Tree Island Steel | Power Financial vs. T2 Metals Corp | Power Financial vs. Calibre Mining Corp | Power Financial vs. Mako Mining 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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