Correlation Between Astar and Beken Corp
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By analyzing existing cross correlation between Astar and Beken Corp, you can compare the effects of market volatilities on Astar and Beken Corp 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 Astar with a short position of Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Beken Corp.
Diversification Opportunities for Astar and Beken Corp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astar and Beken is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp and Astar 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 Astar are associated (or correlated) with Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Astar i.e., Astar and Beken Corp go up and down completely randomly.
Pair Corralation between Astar and Beken Corp
Assuming the 90 days trading horizon Astar is expected to generate 2.61 times more return on investment than Beken Corp. However, Astar is 2.61 times more volatile than Beken Corp. It trades about 0.04 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of risk. If you would invest 4.94 in Astar on October 15, 2024 and sell it today you would earn a total of 1.20 from holding Astar or generate 24.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.34% |
| Values | Daily Returns |
Astar vs. Beken Corp
Performance |
| Timeline |
| Astar |
| Beken Corp |
Astar and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Beken Corp
The main advantage of trading using opposite Astar and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.The idea behind Astar and Beken Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beken Corp vs. Biwin Storage Technology | Beken Corp vs. PetroChina Co Ltd | Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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