Correlation Between Astarta Holding and Movie Games
Can any of the company-specific risk be diversified away by investing in both Astarta Holding and Movie Games 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 Movie Games 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 Movie Games SA, you can compare the effects of market volatilities on Astarta Holding and Movie Games 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 Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and Movie Games.
Diversification Opportunities for Astarta Holding and Movie Games
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astarta and Movie is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games 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 Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of Astarta Holding i.e., Astarta Holding and Movie Games go up and down completely randomly.
Pair Corralation between Astarta Holding and Movie Games
Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 1.08 times more return on investment than Movie Games. However, Astarta Holding is 1.08 times more volatile than Movie Games SA. It trades about 0.25 of its potential returns per unit of risk. Movie Games SA is currently generating about -0.31 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astarta Holding NV vs. Movie Games SA
Performance |
| Timeline |
| Astarta Holding NV |
| Movie Games SA |
Astarta Holding and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astarta Holding and Movie Games
The main advantage of trading using opposite Astarta Holding and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| Astarta Holding vs. LSI Software SA | Astarta Holding vs. Saule Technologies SA | Astarta Holding vs. Immobile | Astarta Holding vs. Enter Air SA |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. TEN SQUARE GAMES |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |