Correlation Between Astar and Obour Land

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

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

Diversification Opportunities for Astar and Obour Land

-0.2

Correlation Coefficient

Astar  Obour Land

Good diversification

The 3 months correlation between Astar and Obour is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Obour Land For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obour Land For 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 Obour Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obour Land For has no effect on the direction of Astar i.e., Astar and Obour Land go up and down completely randomly.

Pair Corralation between Astar and Obour Land

Assuming the 90 days trading horizon Astar is expected to under-perform the Obour Land. In addition to that, Astar is 2.12 times more volatile than Obour Land For. It trades about -0.18 of its total potential returns per unit of risk. Obour Land For is currently generating about 0.08 per unit of volatility. If you would invest  1,721  in Obour Land For on December 21, 2024 and sell it today you would earn a total of  153.00  from holding Obour Land For or generate 8.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Astar  vs.  Obour Land For

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.

Obour Land For

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Obour Land For are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Obour Land may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Astar and Obour Land

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

The idea behind Astar and Obour Land For 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.