Correlation Between Astoria Investments and Sebata Holdings
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Sebata 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 Sebata 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 Sebata Holdings, you can compare the effects of market volatilities on Astoria Investments and Sebata 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 Sebata Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Sebata Holdings.
Diversification Opportunities for Astoria Investments and Sebata Holdings
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astoria and Sebata is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Sebata Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sebata 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 Sebata Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sebata Holdings has no effect on the direction of Astoria Investments i.e., Astoria Investments and Sebata Holdings go up and down completely randomly.
Pair Corralation between Astoria Investments and Sebata Holdings
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.39 times more return on investment than Sebata Holdings. However, Astoria Investments is 2.54 times less risky than Sebata Holdings. It trades about 0.05 of its potential returns per unit of risk. Sebata Holdings is currently generating about 0.02 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. Sebata Holdings
Performance |
| Timeline |
| Astoria Investments |
| Sebata Holdings |
Astoria Investments and Sebata Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Sebata Holdings
The main advantage of trading using opposite Astoria Investments and Sebata Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Sebata 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 Sebata Holdings will offset losses from the drop in Sebata Holdings' long position.| Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sabvest Capital | Astoria Investments vs. Universal Partners |
| Sebata Holdings vs. CA Sales Holdings | Sebata Holdings vs. Trematon Capital Investments | Sebata Holdings vs. Afine Investments | Sebata Holdings vs. Deneb Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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