Correlation Between Astoria Investments and Safari Investments
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Safari Investments 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 Safari Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Safari Investments RSA, you can compare the effects of market volatilities on Astoria Investments and Safari Investments 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 Safari Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Safari Investments.
Diversification Opportunities for Astoria Investments and Safari Investments
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astoria and Safari is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Safari Investments RSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safari Investments RSA 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 Safari Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safari Investments RSA has no effect on the direction of Astoria Investments i.e., Astoria Investments and Safari Investments go up and down completely randomly.
Pair Corralation between Astoria Investments and Safari Investments
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.24 times more return on investment than Safari Investments. However, Astoria Investments is 1.24 times more volatile than Safari Investments RSA. It trades about 0.02 of its potential returns per unit of risk. Safari Investments RSA is currently generating about 0.03 per unit of risk. If you would invest 75,000 in Astoria Investments on October 21, 2024 and sell it today you would earn a total of 10,000 from holding Astoria Investments or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.98% |
| Values | Daily Returns |
Astoria Investments vs. Safari Investments RSA
Performance |
| Timeline |
| Astoria Investments |
| Safari Investments RSA |
Astoria Investments and Safari Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Safari Investments
The main advantage of trading using opposite Astoria Investments and Safari Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Safari Investments 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 Safari Investments will offset losses from the drop in Safari Investments' long position.| Astoria Investments vs. Hosken Consolidated Investments | Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Deneb Investments | Astoria Investments vs. RCL Foods |
| Safari Investments vs. Astral Foods | Safari Investments vs. E Media Holdings | Safari Investments vs. ABSA Bank Limited | Safari Investments vs. Boxer Retail |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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