Correlation Between Astoria Investments and Zeder Investments
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Zeder 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 Zeder 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 Zeder Investments, you can compare the effects of market volatilities on Astoria Investments and Zeder 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 Zeder Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Zeder Investments.
Diversification Opportunities for Astoria Investments and Zeder Investments
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astoria and Zeder is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Zeder Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeder Investments 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 Zeder Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeder Investments has no effect on the direction of Astoria Investments i.e., Astoria Investments and Zeder Investments go up and down completely randomly.
Pair Corralation between Astoria Investments and Zeder Investments
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.97 times more return on investment than Zeder Investments. However, Astoria Investments is 1.03 times less risky than Zeder Investments. It trades about 0.04 of its potential returns per unit of risk. Zeder Investments is currently generating about -0.12 per unit of risk. If you would invest 81,000 in Astoria Investments on August 24, 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. Zeder Investments
Performance |
| Timeline |
| Astoria Investments |
| Zeder Investments |
Astoria Investments and Zeder Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Zeder Investments
The main advantage of trading using opposite Astoria Investments and Zeder Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Zeder 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 Zeder Investments will offset losses from the drop in Zeder Investments' long position.| Astoria Investments vs. Zeder Investments | Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf |
| Zeder Investments vs. Astoria Investments | Zeder Investments vs. Centaur Bci Balanced | Zeder Investments vs. Growthpoint Properties | Zeder Investments vs. Bowler Metcalf |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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