Correlation Between Astar and JS ATIVOS
Can any of the company-specific risk be diversified away by investing in both Astar and JS ATIVOS 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 JS ATIVOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and JS ATIVOS FINANCEIROS, you can compare the effects of market volatilities on Astar and JS ATIVOS 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 JS ATIVOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and JS ATIVOS.
Diversification Opportunities for Astar and JS ATIVOS
Good diversification
The 3 months correlation between Astar and JSAF11 is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Astar and JS ATIVOS FINANCEIROS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS ATIVOS FINANCEIROS 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 JS ATIVOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS ATIVOS FINANCEIROS has no effect on the direction of Astar i.e., Astar and JS ATIVOS go up and down completely randomly.
Pair Corralation between Astar and JS ATIVOS
Assuming the 90 days trading horizon Astar is expected to generate 2.14 times more return on investment than JS ATIVOS. However, Astar is 2.14 times more volatile than JS ATIVOS FINANCEIROS. It trades about 0.05 of its potential returns per unit of risk. JS ATIVOS FINANCEIROS is currently generating about 0.02 per unit of risk. If you would invest 6.20 in Astar on October 20, 2024 and sell it today you would earn a total of 0.16 from holding Astar or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Astar vs. JS ATIVOS FINANCEIROS
Performance |
| Timeline |
| Astar |
| JS ATIVOS FINANCEIROS |
Astar and JS ATIVOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and JS ATIVOS
The main advantage of trading using opposite Astar and JS ATIVOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, JS ATIVOS 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 JS ATIVOS will offset losses from the drop in JS ATIVOS's long position.The idea behind Astar and JS ATIVOS FINANCEIROS 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.| JS ATIVOS vs. Polo Fundo de | JS ATIVOS vs. BTG Pactual Logstica | JS ATIVOS vs. Plano Plano Desenvolvimento | JS ATIVOS vs. Gen Digital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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