Correlation Between Astar and OCA Acquisition

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

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

Diversification Opportunities for Astar and OCA Acquisition

0.0

Correlation Coefficient

Astar  OCA Acquisition

Pay attention - limited upside

The 3 months correlation between Astar and OCA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astar and OCA Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCA Acquisition Corp 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 OCA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCA Acquisition Corp has no effect on the direction of Astar i.e., Astar and OCA Acquisition go up and down completely randomly.

Pair Corralation between Astar and OCA Acquisition

If you would invest (100.00) in OCA Acquisition Corp on December 20, 2024 and sell it today you would earn a total of  100.00  from holding OCA Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astar  vs.  OCA Acquisition Corp

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.

OCA Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days OCA Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OCA Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Astar and OCA Acquisition

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

The idea behind Astar and OCA Acquisition Corp 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.