Correlation Between Movie Games and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Movie Games 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 Movie Games and Astarta Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Movie Games SA and Astarta Holding NV, you can compare the effects of market volatilities on Movie Games 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 Movie Games with a short position of Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Movie Games and Astarta Holding.
Diversification Opportunities for Movie Games and Astarta Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Movie and Astarta is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Movie Games 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 Movie Games 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 Movie Games 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 Movie Games i.e., Movie Games and Astarta Holding go up and down completely randomly.
Pair Corralation between Movie Games and Astarta Holding
Assuming the 90 days trading horizon Movie Games SA is expected to under-perform the Astarta Holding. But the stock apears to be less risky and, when comparing its historical volatility, Movie Games SA is 1.1 times less risky than Astarta Holding. The stock trades about -0.32 of its potential returns per unit of risk. The Astarta Holding NV is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,885 in Astarta Holding NV on September 3, 2024 and sell it today you would earn a total of 865.00 from holding Astarta Holding NV or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Movie Games SA vs. Astarta Holding NV
Performance |
| Timeline |
| Movie Games SA |
| Astarta Holding NV |
Movie Games and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Movie Games and Astarta Holding
The main advantage of trading using opposite Movie Games and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movie Games 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.| Movie Games vs. Skyline Investment SA | Movie Games vs. Globe Trade Centre | Movie Games vs. Echo Investment SA | Movie Games vs. X Trade Brokers |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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