Correlation Between ASTRA INTERNATIONAL and PICC Property

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

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

Diversification Opportunities for ASTRA INTERNATIONAL and PICC Property

-0.65

Correlation Coefficient

ASTRA INTERNATIONAL  PICC Property

Excellent diversification

The 3 months correlation between ASTRA and PICC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL are associated (or correlated) with PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and PICC Property go up and down completely randomly.

Pair Corralation between ASTRA INTERNATIONAL and PICC Property

Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to under-perform the PICC Property. But the stock apears to be less risky and, when comparing its historical volatility, ASTRA INTERNATIONAL is 1.02 times less risky than PICC Property. The stock trades about -0.05 of its potential returns per unit of risk. The PICC Property and is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  141.00  in PICC Property and on November 28, 2024 and sell it today you would earn a total of  19.00  from holding PICC Property and or generate 13.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ASTRA INTERNATIONAL  vs.  PICC Property and

ASTRA INTERNATIONAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASTRA INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile 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.

PICC Property

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PICC Property and are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PICC Property reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASTRA INTERNATIONAL and PICC Property

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

The idea behind ASTRA INTERNATIONAL and PICC Property and 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.