Correlation Between Nampak and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Nampak 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 Nampak and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nampak and Astoria Investments, you can compare the effects of market volatilities on Nampak 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 Nampak with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nampak and Astoria Investments.
Diversification Opportunities for Nampak and Astoria Investments
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nampak and Astoria is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nampak and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Nampak 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 Nampak 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 Nampak i.e., Nampak and Astoria Investments go up and down completely randomly.
Pair Corralation between Nampak and Astoria Investments
Assuming the 90 days trading horizon Nampak is expected to under-perform the Astoria Investments. In addition to that, Nampak is 4.15 times more volatile than Astoria Investments. It trades about -0.09 of its total potential returns per unit of risk. Astoria Investments is currently generating about 0.0 per unit of volatility. If you would invest 82,500 in Astoria Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Astoria Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nampak vs. Astoria Investments
Performance |
| Timeline |
| Nampak |
| Astoria Investments |
Nampak and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nampak and Astoria Investments
The main advantage of trading using opposite Nampak and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nampak 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.| Nampak vs. Astoria Investments | Nampak vs. Kap Industrial Holdings | Nampak vs. eMedia Holdings Limited | Nampak vs. E Media Holdings |
| Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. Zeder Investments | Astoria Investments vs. Sasol Ltd Bee | Astoria Investments vs. Centaur Bci Balanced |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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