Correlation Between Bidvest and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Bidvest 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 Bidvest and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bidvest Group and Astoria Investments, you can compare the effects of market volatilities on Bidvest 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 Bidvest with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bidvest and Astoria Investments.
Diversification Opportunities for Bidvest and Astoria Investments
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bidvest and Astoria is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bidvest Group and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Bidvest 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 Bidvest Group 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 Bidvest i.e., Bidvest and Astoria Investments go up and down completely randomly.
Pair Corralation between Bidvest and Astoria Investments
Assuming the 90 days trading horizon Bidvest Group is expected to generate 1.4 times more return on investment than Astoria Investments. However, Bidvest is 1.4 times more volatile than Astoria Investments. It trades about 0.02 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.0 per unit of risk. If you would invest 2,775,400 in Bidvest Group on September 14, 2024 and sell it today you would earn a total of 14,800 from holding Bidvest Group or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bidvest Group vs. Astoria Investments
Performance |
| Timeline |
| Bidvest Group |
| Astoria Investments |
Bidvest and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bidvest and Astoria Investments
The main advantage of trading using opposite Bidvest and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bidvest 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.| Bidvest vs. Astoria Investments | Bidvest vs. Safari Investments RSA | Bidvest vs. RCL Foods | Bidvest vs. HomeChoice Investments |
| Astoria Investments vs. HomeChoice Investments | Astoria Investments vs. Hosken Consolidated Investments | Astoria Investments vs. Deneb Investments | Astoria Investments vs. CA Sales Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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