Correlation Between Astoria Quality and EMCS
Can any of the company-specific risk be diversified away by investing in both Astoria Quality and EMCS 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 Astoria Quality and EMCS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Quality Kings and EMCS, you can compare the effects of market volatilities on Astoria Quality and EMCS 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 Astoria Quality with a short position of EMCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Quality and EMCS.
Diversification Opportunities for Astoria Quality and EMCS
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astoria and EMCS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Quality Kings and EMCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCS and Astoria Quality 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 Astoria Quality Kings are associated (or correlated) with EMCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCS has no effect on the direction of Astoria Quality i.e., Astoria Quality and EMCS go up and down completely randomly.
Pair Corralation between Astoria Quality and EMCS
Considering the 90-day investment horizon Astoria Quality Kings is expected to generate 0.77 times more return on investment than EMCS. However, Astoria Quality Kings is 1.3 times less risky than EMCS. It trades about 0.14 of its potential returns per unit of risk. EMCS is currently generating about 0.06 per unit of risk. If you would invest 2,421 in Astoria Quality Kings on August 26, 2024 and sell it today you would earn a total of 757.00 from holding Astoria Quality Kings or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Quality Kings vs. EMCS
Performance |
| Timeline |
| Astoria Quality Kings |
| EMCS |
Astoria Quality and EMCS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Quality and EMCS
The main advantage of trading using opposite Astoria Quality and EMCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Quality position performs unexpectedly, EMCS 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 EMCS will offset losses from the drop in EMCS's long position.| Astoria Quality vs. Cambria Micro And | Astoria Quality vs. Invesco Actively Managed | Astoria Quality vs. iShares Trust | Astoria Quality vs. EMCS |
| EMCS vs. Invesco PureBeta MSCI | EMCS vs. Aquagold International | EMCS vs. Morningstar Unconstrained Allocation | EMCS vs. High Yield Municipal Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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