Correlation Between Coinbase Global and Astor Star
Can any of the company-specific risk be diversified away by investing in both Coinbase Global and Astor Star 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 Coinbase Global and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coinbase Global and Astor Star Fund, you can compare the effects of market volatilities on Coinbase Global and Astor Star 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 Coinbase Global with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Global and Astor Star.
Diversification Opportunities for Coinbase Global and Astor Star
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coinbase and Astor is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Global and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Coinbase Global 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 Coinbase Global are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Coinbase Global i.e., Coinbase Global and Astor Star go up and down completely randomly.
Pair Corralation between Coinbase Global and Astor Star
Given the investment horizon of 90 days Coinbase Global is expected to generate 11.36 times more return on investment than Astor Star. However, Coinbase Global is 11.36 times more volatile than Astor Star Fund. It trades about 0.12 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.09 per unit of risk. If you would invest 9,476 in Coinbase Global on January 24, 2024 and sell it today you would earn a total of 13,110 from holding Coinbase Global or generate 138.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Coinbase Global vs. Astor Star Fund
Performance |
Timeline |
Coinbase Global |
Astor Star Fund |
Coinbase Global and Astor Star Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coinbase Global and Astor Star
The main advantage of trading using opposite Coinbase Global and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coinbase Global position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star's long position.Coinbase Global vs. Moodys | Coinbase Global vs. MSCI Inc | Coinbase Global vs. Intercontinental Exchange | Coinbase Global vs. CME Group |
Astor Star vs. Astor Macro Alternative | Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Macro Alternative |
Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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