Correlation Between Astar and 2 RABOBANK

Can any of the company-specific risk be diversified away by investing in both Astar and 2 RABOBANK 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 2 RABOBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astar and 2 RABOBANK 19, you can compare the effects of market volatilities on Astar and 2 RABOBANK 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 2 RABOBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and 2 RABOBANK.

Diversification Opportunities for Astar and 2 RABOBANK

0.0

Correlation Coefficient

Astar  2 RABOBANK

Pay attention - limited upside

The 3 months correlation between Astar and RBK12 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astar and 2 RABOBANK 19 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2 RABOBANK 19 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 2 RABOBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2 RABOBANK 19 has no effect on the direction of Astar i.e., Astar and 2 RABOBANK go up and down completely randomly.

Pair Corralation between Astar and 2 RABOBANK

If you would invest  6.46  in Astar on October 27, 2024 and sell it today you would lose (1.22) from holding Astar or give up 18.89% of portfolio value over 90 days.

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

Astar  vs.  2 RABOBANK 19

Astar

Risk-Adjusted Performance

0 of 100

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 rather sound fundamental indicators, Astar is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

2 RABOBANK 19

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 2 RABOBANK 19 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 2 RABOBANK 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 2 RABOBANK

The main advantage of trading using opposite Astar and 2 RABOBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, 2 RABOBANK 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 2 RABOBANK will offset losses from the drop in 2 RABOBANK's long position.

The idea behind Astar and 2 RABOBANK 19 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.