Correlation Between Astar and Independence Contract

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

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

Diversification Opportunities for Astar and Independence Contract

0.23

Correlation Coefficient

Astar  Independence Contract

Modest diversification

The 3 months correlation between Astar and Independence is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Independence Contract Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Contract 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 Independence Contract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Contract has no effect on the direction of Astar i.e., Astar and Independence Contract go up and down completely randomly.

Pair Corralation between Astar and Independence Contract

If you would invest  5.48  in Astar on October 25, 2024 and sell it today you would lose (0.14) from holding Astar or give up 2.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Astar  vs.  Independence Contract Drilling

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.

Independence Contract

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Independence Contract Drilling, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Independence Contract is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Astar and Independence Contract

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

The idea behind Astar and Independence Contract Drilling, 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 Anywhere module to track or share privately all of your investments from the convenience of any device.