Correlation Between Saule Technologies and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Astarta Holding 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 Saule Technologies and Astarta Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Astarta Holding NV, you can compare the effects of market volatilities on Saule Technologies and Astarta Holding 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 Saule Technologies with a short position of Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Astarta Holding.
Diversification Opportunities for Saule Technologies and Astarta Holding
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saule and Astarta is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of Saule Technologies i.e., Saule Technologies and Astarta Holding go up and down completely randomly.
Pair Corralation between Saule Technologies and Astarta Holding
Assuming the 90 days trading horizon Saule Technologies is expected to generate 1.13 times less return on investment than Astarta Holding. In addition to that, Saule Technologies is 1.7 times more volatile than Astarta Holding NV. It trades about 0.05 of its total potential returns per unit of risk. Astarta Holding NV is currently generating about 0.09 per unit of volatility. If you would invest 4,000 in Astarta Holding NV on October 21, 2024 and sell it today you would earn a total of 115.00 from holding Astarta Holding NV or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Saule Technologies SA vs. Astarta Holding NV
Performance |
| Timeline |
| Saule Technologies |
| Astarta Holding NV |
Saule Technologies and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Astarta Holding
The main advantage of trading using opposite Saule Technologies and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| Saule Technologies vs. Immobile | Saule Technologies vs. Ultimate Games SA | Saule Technologies vs. Mlk Foods Public | Saule Technologies vs. Gaming Factory SA |
| Astarta Holding vs. Agroton Public | Astarta Holding vs. Tauron Polska Energia | Astarta Holding vs. Agroliga Group PLC | Astarta Holding vs. AC SA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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