Correlation Between Komputronik and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Komputronik 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 Komputronik and Astarta Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komputronik SA and Astarta Holding NV, you can compare the effects of market volatilities on Komputronik 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 Komputronik with a short position of Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komputronik and Astarta Holding.
Diversification Opportunities for Komputronik and Astarta Holding
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komputronik and Astarta is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Komputronik 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 Komputronik 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 Komputronik 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 Komputronik i.e., Komputronik and Astarta Holding go up and down completely randomly.
Pair Corralation between Komputronik and Astarta Holding
Assuming the 90 days trading horizon Komputronik SA is expected to under-perform the Astarta Holding. In addition to that, Komputronik is 1.02 times more volatile than Astarta Holding NV. It trades about -0.01 of its total potential returns per unit of risk. Astarta Holding NV is currently generating about 0.22 per unit of volatility. If you would invest 3,060 in Astarta Holding NV on September 3, 2024 and sell it today you would earn a total of 690.00 from holding Astarta Holding NV or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komputronik SA vs. Astarta Holding NV
Performance |
| Timeline |
| Komputronik SA |
| Astarta Holding NV |
Komputronik and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komputronik and Astarta Holding
The main advantage of trading using opposite Komputronik and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komputronik 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.| Komputronik vs. Banco Santander SA | Komputronik vs. UniCredit SpA | Komputronik vs. CEZ as | Komputronik vs. Polski Koncern Naftowy |
| Astarta Holding vs. GreenX Metals | Astarta Holding vs. Gamedust SA | Astarta Holding vs. ING Bank lski | Astarta Holding vs. Varsav Game Studios |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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