Correlation Between ASTRA INTERNATIONAL and H World

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

By analyzing existing cross correlation between ASTRA INTERNATIONAL and H World Group, you can compare the effects of market volatilities on ASTRA INTERNATIONAL and H World 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 H World. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and H World.

Diversification Opportunities for ASTRA INTERNATIONAL and H World

0.0

Correlation Coefficient

ASTRA INTERNATIONAL  H World

Pay attention - limited upside

The 3 months correlation between ASTRA and CL4A is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and H World Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H World Group 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 H World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H World Group has no effect on the direction of ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and H World go up and down completely randomly.

Pair Corralation between ASTRA INTERNATIONAL and H World

If you would invest (100.00) in H World Group on December 27, 2024 and sell it today you would earn a total of  100.00  from holding H World Group or generate -100.0% return on investment over 90 days.

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

ASTRA INTERNATIONAL  vs.  H World Group

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 weak 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.

H World Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days H World Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, H World is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASTRA INTERNATIONAL and H World

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

The idea behind ASTRA INTERNATIONAL and H World Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.