Correlation Between Astar and MJ International

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

By analyzing existing cross correlation between Astar and MJ International Co, you can compare the effects of market volatilities on Astar and MJ International 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 MJ International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and MJ International.

Diversification Opportunities for Astar and MJ International

-0.11

Correlation Coefficient

Astar  MJ International

Good diversification

The 3 months correlation between Astar and 8466 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Astar and MJ International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MJ International 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 MJ International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MJ International has no effect on the direction of Astar i.e., Astar and MJ International go up and down completely randomly.

Pair Corralation between Astar and MJ International

Assuming the 90 days trading horizon Astar is expected to under-perform the MJ International. In addition to that, Astar is 3.34 times more volatile than MJ International Co. It trades about -0.18 of its total potential returns per unit of risk. MJ International Co is currently generating about -0.04 per unit of volatility. If you would invest  4,020  in MJ International Co on December 21, 2024 and sell it today you would lose (155.00) from holding MJ International Co or give up 3.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.3%
Values	Daily Returns

Astar  vs.  MJ International Co

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.

MJ International

Risk-Adjusted Performance

Very Weak

Over the last 90 days MJ International Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, MJ International is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Astar and MJ International

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

The idea behind Astar and MJ International Co 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.