Correlation Between Astar and SPDR Bloomberg

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

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

Diversification Opportunities for Astar and SPDR Bloomberg

0.17

Correlation Coefficient

Astar  SPDR Bloomberg

Average diversification

The 3 months correlation between Astar and SPDR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Astar and SPDR Bloomberg Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Global 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Global has no effect on the direction of Astar i.e., Astar and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between Astar and SPDR Bloomberg

Assuming the 90 days trading horizon Astar is expected to under-perform the SPDR Bloomberg. In addition to that, Astar is 20.25 times more volatile than SPDR Bloomberg Global. It trades about -0.15 of its total potential returns per unit of risk. SPDR Bloomberg Global is currently generating about 0.0 per unit of volatility. If you would invest  2,733  in SPDR Bloomberg Global on October 25, 2024 and sell it today you would earn a total of  0.00  from holding SPDR Bloomberg Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	76.19%
Values	Daily Returns

Astar  vs.  SPDR Bloomberg Global

Astar

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astar are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Astar may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SPDR Bloomberg Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Astar and SPDR Bloomberg

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

The idea behind Astar and SPDR Bloomberg Global 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.