Correlation Between PSG FINANCIAL and ASTORIA INVESTMENT
Can any of the company-specific risk be diversified away by investing in both PSG FINANCIAL and ASTORIA INVESTMENT 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 PSG FINANCIAL and ASTORIA INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSG FINANCIAL SERVICES and ASTORIA INVESTMENT LTD, you can compare the effects of market volatilities on PSG FINANCIAL and ASTORIA INVESTMENT 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 PSG FINANCIAL with a short position of ASTORIA INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSG FINANCIAL and ASTORIA INVESTMENT.
Diversification Opportunities for PSG FINANCIAL and ASTORIA INVESTMENT
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PSG and ASTORIA is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding PSG FINANCIAL SERVICES and ASTORIA INVESTMENT LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORIA INVESTMENT LTD and PSG FINANCIAL 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 PSG FINANCIAL SERVICES are associated (or correlated) with ASTORIA INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORIA INVESTMENT LTD has no effect on the direction of PSG FINANCIAL i.e., PSG FINANCIAL and ASTORIA INVESTMENT go up and down completely randomly.
Pair Corralation between PSG FINANCIAL and ASTORIA INVESTMENT
If you would invest 32.00 in ASTORIA INVESTMENT LTD on November 4, 2024 and sell it today you would earn a total of 0.00 from holding ASTORIA INVESTMENT LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSG FINANCIAL SERVICES vs. ASTORIA INVESTMENT LTD
Performance |
| Timeline |
| PSG FINANCIAL SERVICES |
| ASTORIA INVESTMENT LTD |
PSG FINANCIAL and ASTORIA INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSG FINANCIAL and ASTORIA INVESTMENT
The main advantage of trading using opposite PSG FINANCIAL and ASTORIA INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSG FINANCIAL position performs unexpectedly, ASTORIA INVESTMENT 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 INVESTMENT will offset losses from the drop in ASTORIA INVESTMENT's long position.| PSG FINANCIAL vs. ABC BANKING PORATION | PSG FINANCIAL vs. CIM FINANCIAL SERVICES | PSG FINANCIAL vs. AFREXIMBANK | PSG FINANCIAL vs. MCB INDIA SOVEREIGN |
| ASTORIA INVESTMENT vs. FINCORP INVESTMENT LTD | ASTORIA INVESTMENT vs. MCB GROUP LIMITED | ASTORIA INVESTMENT vs. MCB GROUP LTD | ASTORIA INVESTMENT vs. LOTTOTECH LTD |
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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