Correlation Between Algorand and ASTRA GRAPHIA

Can any of the company-specific risk be diversified away by investing in both Algorand and ASTRA GRAPHIA 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 Algorand and ASTRA GRAPHIA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Algorand and ASTRA GRAPHIA, you can compare the effects of market volatilities on Algorand and ASTRA GRAPHIA 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 Algorand with a short position of ASTRA GRAPHIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algorand and ASTRA GRAPHIA.

Diversification Opportunities for Algorand and ASTRA GRAPHIA

-0.47

Correlation Coefficient

Algorand  ASTRA GRAPHIA

Very good diversification

The 3 months correlation between Algorand and ASTRA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Algorand and ASTRA GRAPHIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA GRAPHIA and Algorand 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 Algorand are associated (or correlated) with ASTRA GRAPHIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA GRAPHIA has no effect on the direction of Algorand i.e., Algorand and ASTRA GRAPHIA go up and down completely randomly.

Pair Corralation between Algorand and ASTRA GRAPHIA

Assuming the 90 days trading horizon Algorand is expected to generate 7.03 times more return on investment than ASTRA GRAPHIA. However, Algorand is 7.03 times more volatile than ASTRA GRAPHIA. It trades about 0.25 of its potential returns per unit of risk. ASTRA GRAPHIA is currently generating about -0.1 per unit of risk. If you would invest  12.00  in Algorand on October 26, 2024 and sell it today you would earn a total of  29.00  from holding Algorand or generate 241.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Algorand  vs.  ASTRA GRAPHIA

Algorand

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Algorand are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Algorand exhibited solid returns over the last few months and may actually be approaching a breakup point.

ASTRA GRAPHIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASTRA GRAPHIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Algorand and ASTRA GRAPHIA

The main advantage of trading using opposite Algorand and ASTRA GRAPHIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algorand position performs unexpectedly, ASTRA GRAPHIA 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 GRAPHIA will offset losses from the drop in ASTRA GRAPHIA's long position.

The idea behind Algorand and ASTRA GRAPHIA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.