Correlation Between AST Groupe and Maat Pharma

Can any of the company-specific risk be diversified away by investing in both AST Groupe and Maat Pharma 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 AST Groupe and Maat Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AST Groupe and Maat Pharma SA, you can compare the effects of market volatilities on AST Groupe and Maat Pharma 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 AST Groupe with a short position of Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST Groupe and Maat Pharma.

Diversification Opportunities for AST Groupe and Maat Pharma

0.0

Correlation Coefficient

AST Groupe  Maat Pharma

Pay attention - limited upside

The 3 months correlation between AST and Maat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AST Groupe and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma SA and AST Groupe 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 AST Groupe are associated (or correlated) with Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of AST Groupe i.e., AST Groupe and Maat Pharma go up and down completely randomly.

Pair Corralation between AST Groupe and Maat Pharma

Assuming the 90 days trading horizon AST Groupe is expected to under-perform the Maat Pharma. In addition to that, AST Groupe is 1.79 times more volatile than Maat Pharma SA. It trades about -0.04 of its total potential returns per unit of risk. Maat Pharma SA is currently generating about 0.02 per unit of volatility. If you would invest  860.00  in Maat Pharma SA on October 12, 2024 and sell it today you would earn a total of  48.00  from holding Maat Pharma SA or generate 5.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

AST Groupe  vs.  Maat Pharma SA

AST Groupe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AST Groupe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AST Groupe is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Maat Pharma SA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maat Pharma SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Maat Pharma sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AST Groupe and Maat Pharma

The main advantage of trading using opposite AST Groupe and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST Groupe position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma's long position.

The idea behind AST Groupe and Maat Pharma SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.