Correlation Between Astar and FLAT CAPITAL

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

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

Diversification Opportunities for Astar and FLAT CAPITAL

-0.59

Correlation Coefficient

Astar  FLAT CAPITAL

Excellent diversification

The 3 months correlation between Astar and FLAT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Astar and FLAT CAPITAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLAT CAPITAL AB 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 FLAT CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLAT CAPITAL AB has no effect on the direction of Astar i.e., Astar and FLAT CAPITAL go up and down completely randomly.

Pair Corralation between Astar and FLAT CAPITAL

Assuming the 90 days trading horizon Astar is expected to under-perform the FLAT CAPITAL. But the crypto coin apears to be less risky and, when comparing its historical volatility, Astar is 2.57 times less risky than FLAT CAPITAL. The crypto coin trades about -0.17 of its potential returns per unit of risk. The FLAT CAPITAL AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  126.00  in FLAT CAPITAL AB on December 20, 2024 and sell it today you would earn a total of  75.00  from holding FLAT CAPITAL AB or generate 59.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Astar  vs.  FLAT CAPITAL AB

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.

FLAT CAPITAL AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FLAT CAPITAL AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FLAT CAPITAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astar and FLAT CAPITAL

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

The idea behind Astar and FLAT CAPITAL AB 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.