Correlation Between Orange SA and AST SpaceMobile
Can any of the company-specific risk be diversified away by investing in both Orange SA and AST SpaceMobile 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 Orange SA and AST SpaceMobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orange SA ADR and AST SpaceMobile, you can compare the effects of market volatilities on Orange SA and AST SpaceMobile 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 Orange SA with a short position of AST SpaceMobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orange SA and AST SpaceMobile.
Diversification Opportunities for Orange SA and AST SpaceMobile
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Orange and AST is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Orange SA ADR and AST SpaceMobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST SpaceMobile and Orange SA 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 Orange SA ADR are associated (or correlated) with AST SpaceMobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST SpaceMobile has no effect on the direction of Orange SA i.e., Orange SA and AST SpaceMobile go up and down completely randomly.
Pair Corralation between Orange SA and AST SpaceMobile
If you would invest 1,349 in AST SpaceMobile on August 27, 2024 and sell it today you would earn a total of 0.00 from holding AST SpaceMobile or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Orange SA ADR vs. AST SpaceMobile
Performance |
| Timeline |
| Orange SA ADR |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Orange SA and AST SpaceMobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orange SA and AST SpaceMobile
The main advantage of trading using opposite Orange SA and AST SpaceMobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orange SA position performs unexpectedly, AST SpaceMobile 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 AST SpaceMobile will offset losses from the drop in AST SpaceMobile's long position.| Orange SA vs. Telefonica Brasil SA | Orange SA vs. Vodafone Group PLC | Orange SA vs. Grupo Televisa SAB | Orange SA vs. America Movil SAB |
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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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