Correlation Between Astar and La Française

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

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

Diversification Opportunities for Astar and La Française

0.0

Correlation Coefficient

Astar  La Française

Pay attention - limited upside

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

Pair Corralation between Astar and La Française

Assuming the 90 days trading horizon Astar is expected to under-perform the La Française. In addition to that, Astar is 2.44 times more volatile than La Franaise des. It trades about -0.18 of its total potential returns per unit of risk. La Franaise des is currently generating about -0.13 per unit of volatility. If you would invest  3,664  in La Franaise des on December 19, 2024 and sell it today you would lose (588.00) from holding La Franaise des or give up 16.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Astar  vs.  La Franaise des

Astar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Astar shareholders.

La Franaise des

Risk-Adjusted Performance

Very Weak

Over the last 90 days La Franaise des has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Astar and La Française

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

The idea behind Astar and La Franaise des 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.