Correlation Between Astoria Investments and Compagnie Financire
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Compagnie Financire 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 Compagnie Financire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Compagnie Financire Richemont, you can compare the effects of market volatilities on Astoria Investments and Compagnie Financire 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 Compagnie Financire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Compagnie Financire.
Diversification Opportunities for Astoria Investments and Compagnie Financire
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and Compagnie is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Compagnie Financire Richemont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Financire 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 Compagnie Financire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Financire has no effect on the direction of Astoria Investments i.e., Astoria Investments and Compagnie Financire go up and down completely randomly.
Pair Corralation between Astoria Investments and Compagnie Financire
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.96 times more return on investment than Compagnie Financire. However, Astoria Investments is 1.96 times more volatile than Compagnie Financire Richemont. It trades about 0.03 of its potential returns per unit of risk. Compagnie Financire Richemont is currently generating about 0.03 per unit of risk. If you would invest 71,000 in Astoria Investments on August 29, 2024 and sell it today you would earn a total of 11,500 from holding Astoria Investments or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. Compagnie Financire Richemont
Performance |
| Timeline |
| Astoria Investments |
| Compagnie Financire |
Astoria Investments and Compagnie Financire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Compagnie Financire
The main advantage of trading using opposite Astoria Investments and Compagnie Financire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Compagnie Financire 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 Compagnie Financire will offset losses from the drop in Compagnie Financire's long position.| Astoria Investments vs. eMedia Holdings Limited | Astoria Investments vs. RCL Foods | Astoria Investments vs. CA Sales Holdings | Astoria Investments vs. Harmony Gold Mining |
| Compagnie Financire vs. Centaur Bci Balanced | Compagnie Financire vs. Sabvest Capital | Compagnie Financire vs. Growthpoint Properties | Compagnie Financire 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 Stocks Directory module to find actively traded stocks across global markets.
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