Correlation Between Inpro SA and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Inpro SA and Astarta Holding 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 Inpro SA and Astarta Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpro SA and Astarta Holding NV, you can compare the effects of market volatilities on Inpro SA and Astarta Holding 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 Inpro SA with a short position of Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpro SA and Astarta Holding.
Diversification Opportunities for Inpro SA and Astarta Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inpro and Astarta is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Inpro SA and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV and Inpro SA 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 Inpro SA are associated (or correlated) with Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of Inpro SA i.e., Inpro SA and Astarta Holding go up and down completely randomly.
Pair Corralation between Inpro SA and Astarta Holding
Assuming the 90 days trading horizon Inpro SA is expected to under-perform the Astarta Holding. But the stock apears to be less risky and, when comparing its historical volatility, Inpro SA is 1.12 times less risky than Astarta Holding. The stock trades about -0.12 of its potential returns per unit of risk. The Astarta Holding NV is currently generating about 0.25 of returns per unit of risk over similar time horizon. 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 |
Inpro SA vs. Astarta Holding NV
Performance |
| Timeline |
| Inpro SA |
| Astarta Holding NV |
Inpro SA and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpro SA and Astarta Holding
The main advantage of trading using opposite Inpro SA and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpro SA position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| Inpro SA vs. Santander Bank Polska | Inpro SA vs. Noble Financials SA | Inpro SA vs. MW Trade SA | Inpro SA vs. BNP Paribas Bank |
| Astarta Holding vs. LSI Software SA | Astarta Holding vs. Saule Technologies SA | Astarta Holding vs. Immobile | Astarta Holding vs. Enter Air 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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