Correlation Between Astoria Investments and Ninety One
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Ninety One 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 Ninety One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Ninety One, you can compare the effects of market volatilities on Astoria Investments and Ninety One 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 Ninety One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Ninety One.
Diversification Opportunities for Astoria Investments and Ninety One
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astoria and Ninety is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Ninety One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninety One 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 Ninety One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninety One has no effect on the direction of Astoria Investments i.e., Astoria Investments and Ninety One go up and down completely randomly.
Pair Corralation between Astoria Investments and Ninety One
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.68 times more return on investment than Ninety One. However, Astoria Investments is 1.68 times more volatile than Ninety One. It trades about 0.05 of its potential returns per unit of risk. Ninety One is currently generating about -0.06 per unit of risk. If you would invest 81,000 in Astoria Investments on August 31, 2024 and sell it today you would earn a total of 1,500 from holding Astoria Investments or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Astoria Investments vs. Ninety One
Performance |
| Timeline |
| Astoria Investments |
| Ninety One |
Astoria Investments and Ninety One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Ninety One
The main advantage of trading using opposite Astoria Investments and Ninety One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Ninety One 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 Ninety One will offset losses from the drop in Ninety One's long position.| Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sabvest Capital | Astoria Investments vs. Universal Partners |
| Ninety One vs. RCL Foods | Ninety One vs. Afine Investments | Ninety One vs. Reinet Investments SCA | Ninety One vs. Safari Investments RSA |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |