Correlation Between Astra Veda and Protek Capital

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

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

Diversification Opportunities for Astra Veda and Protek Capital

0.0

Correlation Coefficient

Astra Veda  Protek Capital

Pay attention - limited upside

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

Pair Corralation between Astra Veda and Protek Capital

Given the investment horizon of 90 days Astra Veda is expected to generate 2.6 times more return on investment than Protek Capital. However, Astra Veda is 2.6 times more volatile than Protek Capital. It trades about 0.14 of its potential returns per unit of risk. Protek Capital is currently generating about -0.13 per unit of risk. If you would invest  0.02  in Astra Veda on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Astra Veda or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Astra Veda  vs.  Protek Capital

Astra Veda

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astra Veda are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Astra Veda sustained solid returns over the last few months and may actually be approaching a breakup point.

Protek Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Protek Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Astra Veda and Protek Capital

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

The idea behind Astra Veda and Protek Capital 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.