Correlation Between Astoria Investments and AECI
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and AECI 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 AECI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and AECI, you can compare the effects of market volatilities on Astoria Investments and AECI 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 AECI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and AECI.
Diversification Opportunities for Astoria Investments and AECI
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astoria and AECI is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and AECI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECI 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 AECI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECI has no effect on the direction of Astoria Investments i.e., Astoria Investments and AECI go up and down completely randomly.
Pair Corralation between Astoria Investments and AECI
If you would invest 82,500 in Astoria Investments on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Astoria Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astoria Investments vs. AECI
Performance |
| Timeline |
| Astoria Investments |
| AECI |
Astoria Investments and AECI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and AECI
The main advantage of trading using opposite Astoria Investments and AECI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, AECI 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 AECI will offset losses from the drop in AECI's long position.| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sabvest Capital | Astoria Investments vs. Universal Partners |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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