Correlation Between CEZ A and Astra Energy
Can any of the company-specific risk be diversified away by investing in both CEZ A and Astra Energy 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 CEZ A and Astra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEZ A S and Astra Energy, you can compare the effects of market volatilities on CEZ A and Astra Energy 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 CEZ A with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ A and Astra Energy.
Diversification Opportunities for CEZ A and Astra Energy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEZ and Astra is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CEZ A S and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy and CEZ A 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 CEZ A S are associated (or correlated) with Astra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Energy has no effect on the direction of CEZ A i.e., CEZ A and Astra Energy go up and down completely randomly.
Pair Corralation between CEZ A and Astra Energy
If you would invest 13.00 in Astra Energy on November 4, 2024 and sell it today you would lose (2.00) from holding Astra Energy or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
CEZ A S vs. Astra Energy
Performance |
| Timeline |
| CEZ A S |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra Energy |
CEZ A and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEZ A and Astra Energy
The main advantage of trading using opposite CEZ A and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ A position performs unexpectedly, Astra Energy 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 Energy will offset losses from the drop in Astra Energy's long position.| CEZ A vs. Fortum Oyj | CEZ A vs. Triad Pro Innovators | CEZ A vs. Powertap Hydrogen Capital | CEZ A vs. Clearway Energy Class |
| Astra Energy vs. Alternus Energy Group | Astra Energy vs. American Security Resources | Astra Energy vs. Carnegie Clean Energy | Astra Energy vs. Brenmiller Energy Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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