Correlation Between Astar and Huddly AS
Can any of the company-specific risk be diversified away by investing in both Astar and Huddly AS 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 Huddly AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Huddly AS, you can compare the effects of market volatilities on Astar and Huddly AS 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 Huddly AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Huddly AS.
Diversification Opportunities for Astar and Huddly AS
Modest diversification
The 3 months correlation between Astar and Huddly is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Huddly AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huddly AS 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 Huddly AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huddly AS has no effect on the direction of Astar i.e., Astar and Huddly AS go up and down completely randomly.
Pair Corralation between Astar and Huddly AS
Assuming the 90 days trading horizon Astar is expected to generate 0.61 times more return on investment than Huddly AS. However, Astar is 1.65 times less risky than Huddly AS. It trades about 0.0 of its potential returns per unit of risk. Huddly AS is currently generating about -0.07 per unit of risk. If you would invest 5.71 in Astar on November 2, 2024 and sell it today you would lose (0.74) from holding Astar or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
Astar vs. Huddly AS
Performance |
| Timeline |
| Astar |
| Huddly AS |
Astar and Huddly AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Huddly AS
The main advantage of trading using opposite Astar and Huddly AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Huddly AS 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 Huddly AS will offset losses from the drop in Huddly AS's long position.The idea behind Astar and Huddly AS 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.| Huddly AS vs. Pexip Holding ASA | Huddly AS vs. Airthings ASA | Huddly AS vs. Aker Horizons AS | Huddly AS vs. Cambi ASA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |