Correlation Between Ascendis Health and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Ascendis Health and Astoria 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 Ascendis Health and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Health and Astoria Investments, you can compare the effects of market volatilities on Ascendis Health and Astoria 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 Ascendis Health with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Health and Astoria Investments.
Diversification Opportunities for Ascendis Health and Astoria Investments
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascendis and Astoria is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Health and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Ascendis Health 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 Ascendis Health are associated (or correlated) with Astoria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Investments has no effect on the direction of Ascendis Health i.e., Ascendis Health and Astoria Investments go up and down completely randomly.
Pair Corralation between Ascendis Health and Astoria Investments
Assuming the 90 days trading horizon Ascendis Health is expected to generate 0.84 times more return on investment than Astoria Investments. However, Ascendis Health is 1.2 times less risky than Astoria Investments. It trades about 0.18 of its potential returns per unit of risk. Astoria Investments is currently generating about -0.09 per unit of risk. If you would invest 7,000 in Ascendis Health on August 28, 2024 and sell it today you would earn a total of 500.00 from holding Ascendis Health or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Health vs. Astoria Investments
Performance |
| Timeline |
| Ascendis Health |
| Astoria Investments |
Ascendis Health and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Health and Astoria Investments
The main advantage of trading using opposite Ascendis Health and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Health position performs unexpectedly, Astoria 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 Astoria Investments will offset losses from the drop in Astoria Investments' long position.| Ascendis Health vs. Trematon Capital Investments | Ascendis Health vs. Hosken Consolidated Investments | Ascendis Health vs. Allied Electronics | Ascendis Health vs. Kumba Iron Ore |
| Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Frontier Transport Holdings | Astoria Investments vs. Kap Industrial Holdings | Astoria Investments vs. Afine 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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