Correlation Between Astar and Avinger
Can any of the company-specific risk be diversified away by investing in both Astar and Avinger 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 Astar and Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Avinger, you can compare the effects of market volatilities on Astar and Avinger 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 Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Avinger.
Diversification Opportunities for Astar and Avinger
Significant diversification
The 3 months correlation between Astar and Avinger is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger 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 Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of Astar i.e., Astar and Avinger go up and down completely randomly.
Pair Corralation between Astar and Avinger
Assuming the 90 days trading horizon Astar is expected to under-perform the Avinger. But the crypto coin apears to be less risky and, when comparing its historical volatility, Astar is 7.27 times less risky than Avinger. The crypto coin trades about -0.07 of its potential returns per unit of risk. The Avinger is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Avinger on October 22, 2024 and sell it today you would lose (4.00) from holding Avinger or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Astar vs. Avinger
Performance |
| Timeline |
| Astar |
| Avinger |
Astar and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Avinger
The main advantage of trading using opposite Astar and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.The idea behind Astar and Avinger 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.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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