Correlation Between Astra Veda and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both Astra Veda and CurrentC Power 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 Veda and CurrentC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Veda and CurrentC Power, you can compare the effects of market volatilities on Astra Veda and CurrentC Power 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 Veda with a short position of CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Veda and CurrentC Power.
Diversification Opportunities for Astra Veda and CurrentC Power
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astra and CurrentC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Astra Veda and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and Astra Veda 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 Veda are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Astra Veda i.e., Astra Veda and CurrentC Power go up and down completely randomly.
Pair Corralation between Astra Veda and CurrentC Power
Given the investment horizon of 90 days Astra Veda is expected to generate 3.42 times less return on investment than CurrentC Power. But when comparing it to its historical volatility, Astra Veda is 3.18 times less risky than CurrentC Power. It trades about 0.17 of its potential returns per unit of risk. CurrentC Power is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 23.00 in CurrentC Power on October 26, 2024 and sell it today you would earn a total of 3.00 from holding CurrentC Power or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Veda vs. CurrentC Power
Performance |
| Timeline |
| Astra Veda |
| CurrentC Power |
Astra Veda and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Veda and CurrentC Power
The main advantage of trading using opposite Astra Veda and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Veda position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.| Astra Veda vs. Majic Wheels Corp | Astra Veda vs. Legends Business Grp | Astra Veda vs. TonnerOne World Holdings | Astra Veda vs. Fernhill Corp |
| CurrentC Power vs. Intuitive Surgical | CurrentC Power vs. Gamehost | CurrentC Power vs. ARIA Wireless Systems | CurrentC Power vs. Ainsworth Game Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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