Correlation Between Astoria Investments and Vodacom
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Vodacom 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 Vodacom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Vodacom Group, you can compare the effects of market volatilities on Astoria Investments and Vodacom 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 Vodacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Vodacom.
Diversification Opportunities for Astoria Investments and Vodacom
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astoria and Vodacom is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Vodacom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodacom Group 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 Vodacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodacom Group has no effect on the direction of Astoria Investments i.e., Astoria Investments and Vodacom go up and down completely randomly.
Pair Corralation between Astoria Investments and Vodacom
Assuming the 90 days trading horizon Astoria Investments is expected to generate 8.67 times less return on investment than Vodacom. In addition to that, Astoria Investments is 1.09 times more volatile than Vodacom Group. It trades about 0.03 of its total potential returns per unit of risk. Vodacom Group is currently generating about 0.24 per unit of volatility. If you would invest 1,019,100 in Vodacom Group on November 3, 2024 and sell it today you would earn a total of 79,600 from holding Vodacom Group or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Astoria Investments vs. Vodacom Group
Performance |
| Timeline |
| Astoria Investments |
| Vodacom Group |
Astoria Investments and Vodacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Vodacom
The main advantage of trading using opposite Astoria Investments and Vodacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Vodacom 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 Vodacom will offset losses from the drop in Vodacom's long position.| Astoria Investments vs. Deneb Investments | Astoria Investments vs. Hosken Consolidated Investments | Astoria Investments vs. HomeChoice Investments | Astoria Investments vs. Mantengu Mining |
| Vodacom vs. Brimstone Investment | Vodacom vs. Trematon Capital Investments | Vodacom vs. HomeChoice Investments | Vodacom vs. Astoria 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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