Correlation Between Astoria Investments and E Media
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and E Media 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 E Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and E Media Holdings, you can compare the effects of market volatilities on Astoria Investments and E Media 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 E Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and E Media.
Diversification Opportunities for Astoria Investments and E Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astoria and EMH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and E Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Media 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 E Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Media Holdings has no effect on the direction of Astoria Investments i.e., Astoria Investments and E Media go up and down completely randomly.
Pair Corralation between Astoria Investments and E Media
Assuming the 90 days trading horizon Astoria Investments is expected to generate 9.44 times less return on investment than E Media. But when comparing it to its historical volatility, Astoria Investments is 2.1 times less risky than E Media. It trades about 0.01 of its potential returns per unit of risk. E Media Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 35,500 in E Media Holdings on October 25, 2024 and sell it today you would earn a total of 500.00 from holding E Media Holdings or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. E Media Holdings
Performance |
| Timeline |
| Astoria Investments |
| E Media Holdings |
Astoria Investments and E Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and E Media
The main advantage of trading using opposite Astoria Investments and E Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, E Media 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 E Media will offset losses from the drop in E Media's long position.| Astoria Investments vs. CA Sales Holdings | Astoria Investments vs. City Lodge Hotels | Astoria Investments vs. Lesaka Technologies | Astoria Investments vs. Advtech |
| E Media vs. Reinet Investments SCA | E Media vs. Astoria Investments | E Media vs. Standard Bank Group | E Media vs. Bytes Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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