Correlation Between Astar and CSHG Imobiliario

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

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

Diversification Opportunities for Astar and CSHG Imobiliario

-0.15

Correlation Coefficient

Astar  CSHG Imobiliario

Good diversification

The 3 months correlation between Astar and CSHG is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Astar and CSHG Imobiliario Fof in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Imobiliario Fof 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 CSHG Imobiliario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Imobiliario Fof has no effect on the direction of Astar i.e., Astar and CSHG Imobiliario go up and down completely randomly.

Pair Corralation between Astar and CSHG Imobiliario

Assuming the 90 days trading horizon Astar is expected to generate 3.88 times more return on investment than CSHG Imobiliario. However, Astar is 3.88 times more volatile than CSHG Imobiliario Fof. It trades about 0.05 of its potential returns per unit of risk. CSHG Imobiliario Fof is currently generating about 0.03 per unit of risk. If you would invest  4.41  in Astar on October 10, 2024 and sell it today you would earn a total of  1.73  from holding Astar or generate 39.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.12%
Values	Daily Returns

Astar  vs.  CSHG Imobiliario Fof

Astar

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Astar are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Astar exhibited solid returns over the last few months and may actually be approaching a breakup point.

CSHG Imobiliario Fof

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CSHG Imobiliario Fof has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, CSHG Imobiliario is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astar and CSHG Imobiliario

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

The idea behind Astar and CSHG Imobiliario Fof 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.