Correlation Between Astoria Investments and MC Mining
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and MC Mining 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 MC Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and MC Mining, you can compare the effects of market volatilities on Astoria Investments and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and MC Mining.
Diversification Opportunities for Astoria Investments and MC Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and MCZ is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of Astoria Investments i.e., Astoria Investments and MC Mining go up and down completely randomly.
Pair Corralation between Astoria Investments and MC Mining
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.64 times more return on investment than MC Mining. However, Astoria Investments is 1.55 times less risky than MC Mining. It trades about 0.02 of its potential returns per unit of risk. MC Mining is currently generating about -0.01 per unit of risk. If you would invest 79,500 in Astoria Investments on November 2, 2024 and sell it today you would earn a total of 3,500 from holding Astoria Investments or generate 4.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Astoria Investments vs. MC Mining
Performance |
Timeline |
Astoria Investments |
MC Mining |
Astoria Investments and MC Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astoria Investments and MC Mining
The main advantage of trading using opposite Astoria Investments and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.Astoria Investments vs. Nedbank Group | Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Astral Foods | Astoria Investments vs. Mantengu Mining |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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