Correlation Between Wind Works and Astra Energy
Can any of the company-specific risk be diversified away by investing in both Wind Works 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 Wind Works and Astra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wind Works Power and Astra Energy, you can compare the effects of market volatilities on Wind Works 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 Wind Works with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wind Works and Astra Energy.
Diversification Opportunities for Wind Works and Astra Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wind and Astra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wind Works Power and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy and Wind Works 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 Wind Works Power 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 Wind Works i.e., Wind Works and Astra Energy go up and down completely randomly.
Pair Corralation between Wind Works and Astra Energy
Given the investment horizon of 90 days Wind Works Power is expected to under-perform the Astra Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Wind Works Power is 2.09 times less risky than Astra Energy. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Astra Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Astra Energy on October 24, 2024 and sell it today you would lose (13.00) from holding Astra Energy or give up 54.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Wind Works Power vs. Astra Energy
Performance |
| Timeline |
| Wind Works Power |
| Astra Energy |
Wind Works and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wind Works and Astra Energy
The main advantage of trading using opposite Wind Works and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wind Works 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.| Wind Works vs. Alternus Energy Group | Wind Works vs. Mass Megawat Wind | Wind Works vs. Kansai Electric Power | Wind Works vs. VirExit Technologies |
| Astra Energy vs. Constellation Energy Corp | Astra Energy vs. Verbund AG ADR | Astra Energy vs. VERBUND AG | Astra Energy vs. Orsted AS ADR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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