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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trematon and Astoria is -0.4. 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 under-perform the Astoria Investments. In addition to that, Trematon Capital is 3.88 times more volatile than Astoria Investments. It trades about -0.11 of its total potential returns per unit of risk. Astoria Investments is currently generating about 0.03 per unit of volatility. If you would invest 82,500 in Astoria Investments on November 2, 2024 and sell it today you would earn a total of 500.00 from holding Astoria Investments or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| 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. Astoria Investments | Trematon Capital vs. Nedbank Group | Trematon Capital vs. Mantengu Mining | Trematon Capital vs. ABSA Bank Limited |
| Astoria Investments vs. Nedbank Group | Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Astral Foods | Astoria Investments vs. Mantengu Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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