Correlation Between Astar and Redefine Properties

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

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

Diversification Opportunities for Astar and Redefine Properties

0.58

Correlation Coefficient

Astar  Redefine Properties

Very weak diversification

The 3 months correlation between Astar and Redefine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Redefine Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redefine Properties 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 Redefine Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redefine Properties has no effect on the direction of Astar i.e., Astar and Redefine Properties go up and down completely randomly.

Pair Corralation between Astar and Redefine Properties

Assuming the 90 days trading horizon Astar is expected to under-perform the Redefine Properties. In addition to that, Astar is 3.37 times more volatile than Redefine Properties. It trades about -0.19 of its total potential returns per unit of risk. Redefine Properties is currently generating about -0.06 per unit of volatility. If you would invest  46,000  in Redefine Properties on December 23, 2024 and sell it today you would lose (2,900) from holding Redefine Properties or give up 6.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.38%
Values	Daily Returns

Astar  vs.  Redefine Properties

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.

Redefine Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Redefine Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Redefine Properties is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Astar and Redefine Properties

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

The idea behind Astar and Redefine Properties 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.