Correlation Between Bumble and Astra Veda
Can any of the company-specific risk be diversified away by investing in both Bumble and Astra Veda 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 Bumble and Astra Veda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumble Inc and Astra Veda, you can compare the effects of market volatilities on Bumble and Astra Veda 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 Bumble with a short position of Astra Veda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumble and Astra Veda.
Diversification Opportunities for Bumble and Astra Veda
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumble and Astra is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bumble Inc and Astra Veda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Veda and Bumble 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 Bumble Inc are associated (or correlated) with Astra Veda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Veda has no effect on the direction of Bumble i.e., Bumble and Astra Veda go up and down completely randomly.
Pair Corralation between Bumble and Astra Veda
Given the investment horizon of 90 days Bumble is expected to generate 15.49 times less return on investment than Astra Veda. But when comparing it to its historical volatility, Bumble Inc is 8.86 times less risky than Astra Veda. It trades about 0.11 of its potential returns per unit of risk. Astra Veda is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Astra Veda on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Astra Veda or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bumble Inc vs. Astra Veda
Performance |
| Timeline |
| Bumble Inc |
| Astra Veda |
Bumble and Astra Veda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumble and Astra Veda
The main advantage of trading using opposite Bumble and Astra Veda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumble position performs unexpectedly, Astra Veda 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 Astra Veda will offset losses from the drop in Astra Veda's long position.The idea behind Bumble Inc and Astra Veda 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.| Astra Veda vs. Majic Wheels Corp | Astra Veda vs. Legends Business Grp | Astra Veda vs. TonnerOne World Holdings | Astra Veda vs. Fernhill Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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