Correlation Between Trematon Capital and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Trematon 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 Trematon 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 Trematon Capital Investments and Astoria Investments, you can compare the effects of market volatilities on Trematon 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 Trematon Capital with a short position of Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trematon Capital and Astoria Investments.
Diversification Opportunities for Trematon Capital and Astoria Investments
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trematon and Astoria is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Trematon Capital Investments and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments and Trematon 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 Trematon Capital Investments 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 Trematon Capital i.e., Trematon Capital and Astoria Investments go up and down completely randomly.
Pair Corralation between Trematon Capital and Astoria Investments
Assuming the 90 days trading horizon Trematon Capital Investments is expected to generate 1.24 times more return on investment than Astoria Investments. However, Trematon Capital is 1.24 times more volatile than Astoria Investments. It trades about 0.03 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.0 per unit of risk. If you would invest 22,600 in Trematon Capital Investments on August 27, 2024 and sell it today you would earn a total of 2,900 from holding Trematon Capital Investments or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Trematon Capital Investments vs. Astoria Investments
Performance |
| Timeline |
| Trematon Capital Inv |
| Astoria Investments |
Trematon Capital and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trematon Capital and Astoria Investments
The main advantage of trading using opposite Trematon Capital and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trematon 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.| Trematon Capital vs. Lighthouse Capital | Trematon Capital vs. Centaur Bci Balanced | Trematon Capital vs. Sabvest Capital | Trematon Capital vs. Growthpoint Properties |
| Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf | Astoria Investments vs. Shoprite Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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