Correlation Between Afine Investments and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Afine Investments and Astoria Investments 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 Afine Investments and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afine Investments and Astoria Investments, you can compare the effects of market volatilities on Afine Investments and Astoria Investments 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 Afine Investments with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afine Investments and Astoria Investments.
Diversification Opportunities for Afine Investments and Astoria Investments
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Afine and Astoria is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Afine Investments and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Afine Investments 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 Afine Investments are associated (or correlated) with Astoria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Investments has no effect on the direction of Afine Investments i.e., Afine Investments and Astoria Investments go up and down completely randomly.
Pair Corralation between Afine Investments and Astoria Investments
Assuming the 90 days trading horizon Afine Investments is expected to generate 21.57 times more return on investment than Astoria Investments. However, Afine Investments is 21.57 times more volatile than Astoria Investments. It trades about 0.07 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.03 per unit of risk. If you would invest 35,896 in Afine Investments on August 24, 2024 and sell it today you would earn a total of 4,104 from holding Afine Investments or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afine Investments vs. Astoria Investments
Performance |
| Timeline |
| Afine Investments |
| Astoria Investments |
Afine Investments and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afine Investments and Astoria Investments
The main advantage of trading using opposite Afine Investments and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afine Investments position performs unexpectedly, Astoria Investments 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 Astoria Investments will offset losses from the drop in Astoria Investments' long position.| Afine Investments vs. Schroder European Real | Afine Investments vs. Centaur Bci Balanced | Afine Investments vs. Sabvest Capital | Afine Investments vs. Growthpoint Properties |
| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |