Correlation Between Astarta Holding and HM Inwest
Can any of the company-specific risk be diversified away by investing in both Astarta Holding and HM Inwest 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 Astarta Holding and HM Inwest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astarta Holding NV and HM Inwest SA, you can compare the effects of market volatilities on Astarta Holding and HM Inwest 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 Astarta Holding with a short position of HM Inwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and HM Inwest.
Diversification Opportunities for Astarta Holding and HM Inwest
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astarta and HMI is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and HM Inwest SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HM Inwest SA and Astarta Holding 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 Astarta Holding NV are associated (or correlated) with HM Inwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HM Inwest SA has no effect on the direction of Astarta Holding i.e., Astarta Holding and HM Inwest go up and down completely randomly.
Pair Corralation between Astarta Holding and HM Inwest
Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 0.63 times more return on investment than HM Inwest. However, Astarta Holding NV is 1.58 times less risky than HM Inwest. It trades about 0.25 of its potential returns per unit of risk. HM Inwest SA is currently generating about 0.13 per unit of risk. If you would invest 2,960 in Astarta Holding NV on September 12, 2024 and sell it today you would earn a total of 1,120 from holding Astarta Holding NV or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astarta Holding NV vs. HM Inwest SA
Performance |
| Timeline |
| Astarta Holding NV |
| HM Inwest SA |
Astarta Holding and HM Inwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astarta Holding and HM Inwest
The main advantage of trading using opposite Astarta Holding and HM Inwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding position performs unexpectedly, HM Inwest 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 HM Inwest will offset losses from the drop in HM Inwest's long position.| Astarta Holding vs. LSI Software SA | Astarta Holding vs. Saule Technologies SA | Astarta Holding vs. Immobile | Astarta Holding vs. Enter Air SA |
| HM Inwest vs. Bank Millennium SA | HM Inwest vs. Echo Investment SA | HM Inwest vs. PZ Cormay SA | HM Inwest vs. Intersport Polska SA |
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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