Correlation Between Prosus NV and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Prosus NV 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 Prosus NV and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosus NV and Astoria Investments, you can compare the effects of market volatilities on Prosus NV 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 Prosus NV with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosus NV and Astoria Investments.
Diversification Opportunities for Prosus NV and Astoria Investments
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prosus and Astoria is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Prosus NV and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Prosus NV 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 Prosus NV 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 Prosus NV i.e., Prosus NV and Astoria Investments go up and down completely randomly.
Pair Corralation between Prosus NV and Astoria Investments
Assuming the 90 days trading horizon Prosus NV is expected to generate 0.52 times more return on investment than Astoria Investments. However, Prosus NV is 1.93 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 0.01 per unit of risk. If you would invest 6,208,065 in Prosus NV on August 28, 2024 and sell it today you would earn a total of 1,001,935 from holding Prosus NV or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Prosus NV vs. Astoria Investments
Performance |
| Timeline |
| Prosus NV |
| Astoria Investments |
Prosus NV and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosus NV and Astoria Investments
The main advantage of trading using opposite Prosus NV and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosus NV 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.| Prosus NV vs. Life Healthcare | Prosus NV vs. RCL Foods | Prosus NV vs. Trematon Capital Investments | Prosus NV vs. Frontier Transport Holdings |
| Astoria Investments vs. eMedia Holdings Limited | Astoria Investments vs. RCL Foods | Astoria Investments vs. CA Sales Holdings | Astoria Investments vs. Harmony Gold Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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