Correlation Between Astoria Investments and Copper 360
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Copper 360 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 Astoria Investments and Copper 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Copper 360, you can compare the effects of market volatilities on Astoria Investments and Copper 360 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 Astoria Investments with a short position of Copper 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Copper 360.
Diversification Opportunities for Astoria Investments and Copper 360
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astoria and Copper is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Copper 360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper 360 and Astoria Investments 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 Astoria Investments are associated (or correlated) with Copper 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper 360 has no effect on the direction of Astoria Investments i.e., Astoria Investments and Copper 360 go up and down completely randomly.
Pair Corralation between Astoria Investments and Copper 360
Assuming the 90 days trading horizon Astoria Investments is expected to generate 0.57 times more return on investment than Copper 360. However, Astoria Investments is 1.75 times less risky than Copper 360. It trades about -0.05 of its potential returns per unit of risk. Copper 360 is currently generating about -0.09 per unit of risk. If you would invest 85,000 in Astoria Investments on December 30, 2024 and sell it today you would lose (5,000) from holding Astoria Investments or give up 5.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Astoria Investments vs. Copper 360
Performance |
Timeline |
Astoria Investments |
Copper 360 |
Astoria Investments and Copper 360 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astoria Investments and Copper 360
The main advantage of trading using opposite Astoria Investments and Copper 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Copper 360 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 Copper 360 will offset losses from the drop in Copper 360's long position.Astoria Investments vs. Harmony Gold Mining | Astoria Investments vs. Frontier Transport Holdings | Astoria Investments vs. HomeChoice Investments | Astoria Investments vs. Kap Industrial Holdings |
Copper 360 vs. Zeder Investments | Copper 360 vs. Safari Investments RSA | Copper 360 vs. Afine Investments | Copper 360 vs. Standard Bank Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |