Correlation Between Astoria Investments and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Growthpoint Properties 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 Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Growthpoint Properties, you can compare the effects of market volatilities on Astoria Investments and Growthpoint Properties 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 Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Growthpoint Properties.
Diversification Opportunities for Astoria Investments and Growthpoint Properties
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and Growthpoint is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Growthpoint Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties 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 Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of Astoria Investments i.e., Astoria Investments and Growthpoint Properties go up and down completely randomly.
Pair Corralation between Astoria Investments and Growthpoint Properties
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.06 times more return on investment than Growthpoint Properties. However, Astoria Investments is 1.06 times more volatile than Growthpoint Properties. It trades about 0.03 of its potential returns per unit of risk. Growthpoint Properties is currently generating about -0.17 per unit of risk. If you would invest 82,500 in Astoria Investments on November 3, 2024 and sell it today you would earn a total of 500.00 from holding Astoria Investments or generate 0.61% 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. Growthpoint Properties
Performance |
| Timeline |
| Astoria Investments |
| Growthpoint Properties |
Astoria Investments and Growthpoint Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Growthpoint Properties
The main advantage of trading using opposite Astoria Investments and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.| Astoria Investments vs. Nedbank Group | Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Astral Foods | Astoria Investments vs. Mantengu Mining |
| Growthpoint Properties vs. Frontier Transport Holdings | Growthpoint Properties vs. HomeChoice Investments | Growthpoint Properties vs. Copper 360 | Growthpoint Properties vs. Capitec Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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