Correlation Between Astoria Investments and Trematon Capital
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Trematon Capital 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 Trematon Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Trematon Capital Investments, you can compare the effects of market volatilities on Astoria Investments and Trematon Capital 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 Trematon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Trematon Capital.
Diversification Opportunities for Astoria Investments and Trematon Capital
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astoria and Trematon is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Trematon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trematon Capital Inv 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 Trematon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trematon Capital Inv has no effect on the direction of Astoria Investments i.e., Astoria Investments and Trematon Capital go up and down completely randomly.
Pair Corralation between Astoria Investments and Trematon Capital
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.82 times more return on investment than Trematon Capital. However, Astoria Investments is 1.23 times less risky than Trematon Capital. It trades about 0.03 of its potential returns per unit of risk. Trematon Capital Investments is currently generating about 0.01 per unit of risk. If you would invest 71,000 in Astoria Investments on August 30, 2024 and sell it today you would earn a total of 11,500 from holding Astoria Investments or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. Trematon Capital Investments
Performance |
| Timeline |
| Astoria Investments |
| Trematon Capital Inv |
Astoria Investments and Trematon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Trematon Capital
The main advantage of trading using opposite Astoria Investments and Trematon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Trematon Capital 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 Trematon Capital will offset losses from the drop in Trematon Capital's long position.| Astoria Investments vs. Remgro | Astoria Investments vs. Brait SE | Astoria Investments vs. Zeder Investments |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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