Correlation Between Astoria Investments and Advtech
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Advtech 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 Astoria Investments and Advtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Advtech, you can compare the effects of market volatilities on Astoria Investments and Advtech 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 Astoria Investments with a short position of Advtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Advtech.
Diversification Opportunities for Astoria Investments and Advtech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astoria and Advtech is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Advtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advtech and Astoria 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 Astoria Investments are associated (or correlated) with Advtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advtech has no effect on the direction of Astoria Investments i.e., Astoria Investments and Advtech go up and down completely randomly.
Pair Corralation between Astoria Investments and Advtech
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.74 times more return on investment than Advtech. However, Astoria Investments is 1.35 times less risky than Advtech. It trades about -0.13 of its potential returns per unit of risk. Advtech is currently generating about -0.16 per unit of risk. If you would invest 85,000 in Astoria Investments on November 28, 2024 and sell it today you would lose (2,400) from holding Astoria Investments or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. Advtech
Performance |
| Timeline |
| Astoria Investments |
| Advtech |
Astoria Investments and Advtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Advtech
The main advantage of trading using opposite Astoria Investments and Advtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Advtech 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 Advtech will offset losses from the drop in Advtech's long position.| Astoria Investments vs. Bytes Technology | Astoria Investments vs. MC Mining | Astoria Investments vs. Datatec | Astoria Investments vs. eMedia Holdings Limited |
| Advtech vs. Deneb Investments | Advtech vs. CA Sales Holdings | Advtech vs. MC Mining | Advtech vs. Harmony Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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