Correlation Between Eve Holding and Astra Space
Can any of the company-specific risk be diversified away by investing in both Eve Holding and Astra Space 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 Eve Holding and Astra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Astra Space, you can compare the effects of market volatilities on Eve Holding and Astra Space 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 Eve Holding with a short position of Astra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Astra Space.
Diversification Opportunities for Eve Holding and Astra Space
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eve and Astra is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Astra Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Space and Eve Holding 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 Eve Holding are associated (or correlated) with Astra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Space has no effect on the direction of Eve Holding i.e., Eve Holding and Astra Space go up and down completely randomly.
Pair Corralation between Eve Holding and Astra Space
Given the investment horizon of 90 days Eve Holding is expected to generate 0.66 times more return on investment than Astra Space. However, Eve Holding is 1.52 times less risky than Astra Space. It trades about -0.03 of its potential returns per unit of risk. Astra Space is currently generating about -0.13 per unit of risk. If you would invest 620.00 in Eve Holding on August 28, 2024 and sell it today you would lose (217.00) from holding Eve Holding or give up 35.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.94% |
| Values | Daily Returns |
Eve Holding vs. Astra Space
Performance |
| Timeline |
| Eve Holding |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eve Holding and Astra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Astra Space
The main advantage of trading using opposite Eve Holding and Astra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding position performs unexpectedly, Astra Space 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 Space will offset losses from the drop in Astra Space's long position.| Eve Holding vs. The Boeing | Eve Holding vs. Curtiss Wright | Eve Holding vs. Ehang Holdings | Eve Holding vs. General Dynamics |
| Astra Space vs. Virgin Galactic Holdings | Astra Space vs. Planet Labs PBC | Astra Space vs. Eve Holding | Astra Space vs. Redwire 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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