Correlation Between Sabvest Capital and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Sabvest Capital 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 Sabvest Capital and Astoria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabvest Capital and Astoria Investments, you can compare the effects of market volatilities on Sabvest Capital 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 Sabvest Capital with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabvest Capital and Astoria Investments.
Diversification Opportunities for Sabvest Capital and Astoria Investments
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabvest and Astoria is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sabvest Capital and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Sabvest Capital 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 Sabvest Capital 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 Sabvest Capital i.e., Sabvest Capital and Astoria Investments go up and down completely randomly.
Pair Corralation between Sabvest Capital and Astoria Investments
Assuming the 90 days trading horizon Sabvest Capital is expected to generate 1.64 times more return on investment than Astoria Investments. However, Sabvest Capital is 1.64 times more volatile than Astoria Investments. It trades about 0.22 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.05 per unit of risk. If you would invest 830,000 in Sabvest Capital on August 30, 2024 and sell it today you would earn a total of 120,000 from holding Sabvest Capital or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabvest Capital vs. Astoria Investments
Performance |
| Timeline |
| Sabvest Capital |
| Astoria Investments |
Sabvest Capital and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabvest Capital and Astoria Investments
The main advantage of trading using opposite Sabvest Capital and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabvest Capital 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.| Sabvest Capital vs. Hosken Consolidated Investments | Sabvest Capital vs. Frontier Transport Holdings | Sabvest Capital vs. City Lodge Hotels | Sabvest Capital vs. Deneb Investments |
| Astoria Investments vs. Remgro | Astoria Investments vs. Brait SE | Astoria Investments vs. Zeder Investments |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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