Correlation Between Astar and BAXALTA

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

By analyzing existing cross correlation between Astar and BAXALTA INC 525, you can compare the effects of market volatilities on Astar and BAXALTA 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 BAXALTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and BAXALTA.

Diversification Opportunities for Astar and BAXALTA

0.77

Correlation Coefficient

Astar  BAXALTA

Poor diversification

The 3 months correlation between Astar and BAXALTA is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Astar and BAXALTA INC 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXALTA INC 525 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 BAXALTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXALTA INC 525 has no effect on the direction of Astar i.e., Astar and BAXALTA go up and down completely randomly.

Pair Corralation between Astar and BAXALTA

Assuming the 90 days trading horizon Astar is expected to under-perform the BAXALTA. In addition to that, Astar is 3.29 times more volatile than BAXALTA INC 525. It trades about -0.19 of its total potential returns per unit of risk. BAXALTA INC 525 is currently generating about -0.03 per unit of volatility. If you would invest  9,221  in BAXALTA INC 525 on December 24, 2024 and sell it today you would lose (84.00) from holding BAXALTA INC 525 or give up 0.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	26.56%
Values	Daily Returns

Astar  vs.  BAXALTA INC 525

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.

BAXALTA INC 525

Risk-Adjusted Performance

Very Weak

Over the last 90 days BAXALTA INC 525 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BAXALTA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astar and BAXALTA

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

The idea behind Astar and BAXALTA INC 525 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.