Correlation Between Astoria Investments and JSE
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and JSE 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 JSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and JSE Limited, you can compare the effects of market volatilities on Astoria Investments and JSE 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 JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and JSE.
Diversification Opportunities for Astoria Investments and JSE
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astoria and JSE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited 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 JSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSE Limited has no effect on the direction of Astoria Investments i.e., Astoria Investments and JSE go up and down completely randomly.
Pair Corralation between Astoria Investments and JSE
If you would invest 82,500 in Astoria Investments on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Astoria Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astoria Investments vs. JSE Limited
Performance |
| Timeline |
| Astoria Investments |
| JSE Limited |
Astoria Investments and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and JSE
The main advantage of trading using opposite Astoria Investments and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, JSE 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 JSE will offset losses from the drop in JSE's long position.| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sabvest Capital | Astoria Investments vs. Universal Partners |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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