Correlation Between REVO INSURANCE and ASTRA INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and ASTRA INTERNATIONAL 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 REVO INSURANCE and ASTRA INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on REVO INSURANCE and ASTRA INTERNATIONAL 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 REVO INSURANCE with a short position of ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and ASTRA INTERNATIONAL.
Diversification Opportunities for REVO INSURANCE and ASTRA INTERNATIONAL
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REVO and ASTRA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and ASTRA INTERNATIONAL go up and down completely randomly.
Pair Corralation between REVO INSURANCE and ASTRA INTERNATIONAL
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.68 times more return on investment than ASTRA INTERNATIONAL. However, REVO INSURANCE SPA is 1.48 times less risky than ASTRA INTERNATIONAL. It trades about 0.05 of its potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about -0.01 per unit of risk. If you would invest 818.00 in REVO INSURANCE SPA on September 3, 2024 and sell it today you would earn a total of 262.00 from holding REVO INSURANCE SPA or generate 32.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. ASTRA INTERNATIONAL
Performance |
| Timeline |
| REVO INSURANCE SPA |
| ASTRA INTERNATIONAL |
REVO INSURANCE and ASTRA INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and ASTRA INTERNATIONAL
The main advantage of trading using opposite REVO INSURANCE and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, ASTRA INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.| REVO INSURANCE vs. Diamondrock Hospitality Co | REVO INSURANCE vs. Mobilezone Holding AG | REVO INSURANCE vs. Cardinal Health | REVO INSURANCE vs. WillScot Mobile Mini |
| ASTRA INTERNATIONAL vs. Salesforce | ASTRA INTERNATIONAL vs. Harmony Gold Mining | ASTRA INTERNATIONAL vs. BOS BETTER ONLINE | ASTRA INTERNATIONAL vs. PACIFIC ONLINE |
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 Stocks Directory module to find actively traded stocks across global markets.
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