Correlation Between Astar and US Silica
Can any of the company-specific risk be diversified away by investing in both Astar and US Silica 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 US Silica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and US Silica Holdings, you can compare the effects of market volatilities on Astar and US Silica 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 US Silica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and US Silica.
Diversification Opportunities for Astar and US Silica
Excellent diversification
The 3 months correlation between Astar and SLCA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Astar and US Silica Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Silica Holdings 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 US Silica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Silica Holdings has no effect on the direction of Astar i.e., Astar and US Silica go up and down completely randomly.
Pair Corralation between Astar and US Silica
If you would invest 5.92 in Astar on October 21, 2024 and sell it today you would earn a total of 0.44 from holding Astar or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astar vs. US Silica Holdings
Performance |
| Timeline |
| Astar |
| US Silica Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astar and US Silica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and US Silica
The main advantage of trading using opposite Astar and US Silica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, US Silica 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 US Silica will offset losses from the drop in US Silica's long position.The idea behind Astar and US Silica Holdings 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.| US Silica vs. North American Construction | US Silica vs. ProPetro Holding Corp | US Silica vs. Ranger Energy Services | US Silica vs. Cactus Inc |
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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