Correlation Between Astar and M2M GROUP
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By analyzing existing cross correlation between Astar and M2M GROUP, you can compare the effects of market volatilities on Astar and M2M GROUP 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 M2M GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and M2M GROUP.
Diversification Opportunities for Astar and M2M GROUP
Very weak diversification
The 3 months correlation between Astar and M2M is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Astar and M2M GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M2M GROUP 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 M2M GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M2M GROUP has no effect on the direction of Astar i.e., Astar and M2M GROUP go up and down completely randomly.
Pair Corralation between Astar and M2M GROUP
Assuming the 90 days trading horizon Astar is expected to generate 3.93 times more return on investment than M2M GROUP. However, Astar is 3.93 times more volatile than M2M GROUP. It trades about 0.01 of its potential returns per unit of risk. M2M GROUP is currently generating about -0.03 per unit of risk. If you would invest 7.90 in Astar on November 2, 2024 and sell it today you would lose (2.93) from holding Astar or give up 37.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.44% |
| Values | Daily Returns |
Astar vs. M2M GROUP
Performance |
| Timeline |
| Astar |
| M2M GROUP |
Astar and M2M GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and M2M GROUP
The main advantage of trading using opposite Astar and M2M GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, M2M GROUP 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 M2M GROUP will offset losses from the drop in M2M GROUP's long position.The idea behind Astar and M2M GROUP 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.| M2M GROUP vs. CREDIT IMMOBILIER ET | M2M GROUP vs. CFG BANK | M2M GROUP vs. MICRODATA | M2M GROUP vs. ATTIJARIWAFA 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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