Correlation Between Astoria Investments and Clicks
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Clicks 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 Clicks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Clicks, you can compare the effects of market volatilities on Astoria Investments and Clicks 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 Clicks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Clicks.
Diversification Opportunities for Astoria Investments and Clicks
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and Clicks is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Clicks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clicks 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 Clicks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clicks has no effect on the direction of Astoria Investments i.e., Astoria Investments and Clicks go up and down completely randomly.
Pair Corralation between Astoria Investments and Clicks
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.92 times more return on investment than Clicks. However, Astoria Investments is 1.92 times more volatile than Clicks. It trades about 0.03 of its potential returns per unit of risk. Clicks is currently generating about 0.04 per unit of risk. If you would invest 78,000 in Astoria Investments on November 3, 2024 and sell it today you would earn a total of 5,000 from holding Astoria Investments or generate 6.41% 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. Clicks
Performance |
| Timeline |
| Astoria Investments |
| Clicks |
Astoria Investments and Clicks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Clicks
The main advantage of trading using opposite Astoria Investments and Clicks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Clicks 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 Clicks will offset losses from the drop in Clicks' long position.| Astoria Investments vs. Nedbank Group | Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Astral Foods | Astoria Investments vs. Mantengu Mining |
| Clicks vs. Harmony Gold Mining | Clicks vs. Blue Label Telecoms | Clicks vs. Mantengu Mining | Clicks vs. CA Sales Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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