Correlation Between Astoria Investments and CA Sales
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and CA Sales 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 CA Sales into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and CA Sales Holdings, you can compare the effects of market volatilities on Astoria Investments and CA Sales 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 CA Sales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and CA Sales.
Diversification Opportunities for Astoria Investments and CA Sales
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and CAA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and CA Sales Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Sales Holdings 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 CA Sales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Sales Holdings has no effect on the direction of Astoria Investments i.e., Astoria Investments and CA Sales go up and down completely randomly.
Pair Corralation between Astoria Investments and CA Sales
Assuming the 90 days trading horizon Astoria Investments is expected to generate 2.27 times less return on investment than CA Sales. In addition to that, Astoria Investments is 1.63 times more volatile than CA Sales Holdings. It trades about 0.03 of its total potential returns per unit of risk. CA Sales Holdings is currently generating about 0.1 per unit of volatility. If you would invest 59,478 in CA Sales Holdings on August 24, 2024 and sell it today you would earn a total of 97,522 from holding CA Sales Holdings or generate 163.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Astoria Investments vs. CA Sales Holdings
Performance |
| Timeline |
| Astoria Investments |
| CA Sales Holdings |
Astoria Investments and CA Sales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and CA Sales
The main advantage of trading using opposite Astoria Investments and CA Sales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, CA Sales 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 CA Sales will offset losses from the drop in CA Sales' long position.| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf |
| CA Sales vs. Hosken Consolidated Investments | CA Sales vs. Zeder Investments | CA Sales vs. Kumba Iron Ore | CA Sales vs. Astoria Investments |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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