Correlation Between Hosken Consolidated and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Hosken Consolidated 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 Hosken Consolidated and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hosken Consolidated Investments and Astoria Investments, you can compare the effects of market volatilities on Hosken Consolidated 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 Hosken Consolidated with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hosken Consolidated and Astoria Investments.
Diversification Opportunities for Hosken Consolidated and Astoria Investments
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hosken and Astoria is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hosken Consolidated Investment and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Hosken Consolidated 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 Hosken Consolidated Investments 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 Hosken Consolidated i.e., Hosken Consolidated and Astoria Investments go up and down completely randomly.
Pair Corralation between Hosken Consolidated and Astoria Investments
Assuming the 90 days trading horizon Hosken Consolidated is expected to generate 1.94 times less return on investment than Astoria Investments. But when comparing it to its historical volatility, Hosken Consolidated Investments is 2.28 times less risky than Astoria Investments. It trades about 0.03 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 71,000 in Astoria Investments on August 28, 2024 and sell it today you would earn a total of 11,500 from holding Astoria Investments or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hosken Consolidated Investment vs. Astoria Investments
Performance |
| Timeline |
| Hosken Consolidated |
| Astoria Investments |
Hosken Consolidated and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hosken Consolidated and Astoria Investments
The main advantage of trading using opposite Hosken Consolidated and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hosken Consolidated 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.| Hosken Consolidated vs. CA Sales Holdings | Hosken Consolidated vs. Datatec | Hosken Consolidated vs. Zeder Investments | Hosken Consolidated vs. Capitec Bank Holdings |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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