Correlation Between Astoria Investments and Motus Holdings
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Motus Holdings 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 Motus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Motus Holdings, you can compare the effects of market volatilities on Astoria Investments and Motus Holdings 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 Motus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Motus Holdings.
Diversification Opportunities for Astoria Investments and Motus Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astoria and Motus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Motus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motus 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 Motus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motus Holdings has no effect on the direction of Astoria Investments i.e., Astoria Investments and Motus Holdings go up and down completely randomly.
Pair Corralation between Astoria Investments and Motus Holdings
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.82 times less return on investment than Motus Holdings. In addition to that, Astoria Investments is 2.08 times more volatile than Motus Holdings. It trades about 0.02 of its total potential returns per unit of risk. Motus Holdings is currently generating about 0.06 per unit of volatility. If you would invest 874,858 in Motus Holdings on August 31, 2024 and sell it today you would earn a total of 356,142 from holding Motus Holdings or generate 40.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Astoria Investments vs. Motus Holdings
Performance |
| Timeline |
| Astoria Investments |
| Motus Holdings |
Astoria Investments and Motus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Motus Holdings
The main advantage of trading using opposite Astoria Investments and Motus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Motus Holdings 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 Motus Holdings will offset losses from the drop in Motus Holdings' long position.| Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sabvest Capital | Astoria Investments vs. Universal Partners |
| Motus Holdings vs. Copper 360 | Motus Holdings vs. E Media Holdings | Motus Holdings vs. eMedia Holdings Limited | Motus Holdings vs. Reinet Investments SCA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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