Correlation Between Astarta Holding and Wielton SA
Can any of the company-specific risk be diversified away by investing in both Astarta Holding and Wielton SA 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 Wielton SA 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 Wielton SA, you can compare the effects of market volatilities on Astarta Holding and Wielton SA 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 Wielton SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and Wielton SA.
Diversification Opportunities for Astarta Holding and Wielton SA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astarta and Wielton is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and Wielton SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wielton 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 Wielton SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wielton SA has no effect on the direction of Astarta Holding i.e., Astarta Holding and Wielton SA go up and down completely randomly.
Pair Corralation between Astarta Holding and Wielton SA
Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 1.59 times more return on investment than Wielton SA. However, Astarta Holding is 1.59 times more volatile than Wielton SA. It trades about 0.34 of its potential returns per unit of risk. Wielton SA is currently generating about -0.1 per unit of risk. If you would invest 3,175 in Astarta Holding NV on September 4, 2024 and sell it today you would earn a total of 695.00 from holding Astarta Holding NV or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astarta Holding NV vs. Wielton SA
Performance |
| Timeline |
| Astarta Holding NV |
| Wielton SA |
Astarta Holding and Wielton SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astarta Holding and Wielton SA
The main advantage of trading using opposite Astarta Holding and Wielton SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding position performs unexpectedly, Wielton SA 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 Wielton SA will offset losses from the drop in Wielton SA's long position.| Astarta Holding vs. Noble Financials SA | Astarta Holding vs. Movie Games SA | Astarta Holding vs. Pyramid Games SA | Astarta Holding vs. Ultimate Games SA |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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