Correlation Between ASHX and Inspire Global

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

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

Diversification Opportunities for ASHX and Inspire Global

0.0

Correlation Coefficient

ASHX  Inspire Global

Pay attention - limited upside

The 3 months correlation between ASHX and Inspire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASHX and Inspire Global Hope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire Global Hope and ASHX 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 ASHX are associated (or correlated) with Inspire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire Global Hope has no effect on the direction of ASHX i.e., ASHX and Inspire Global go up and down completely randomly.

Pair Corralation between ASHX and Inspire Global

If you would invest  3,775  in Inspire Global Hope on December 25, 2024 and sell it today you would earn a total of  84.00  from holding Inspire Global Hope or generate 2.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ASHX  vs.  Inspire Global Hope

ASHX

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASHX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, ASHX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Inspire Global Hope

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inspire Global Hope are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Inspire Global is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ASHX and Inspire Global

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

The idea behind ASHX and Inspire Global Hope 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.