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

-0.03

Correlation Coefficient

Astoria Investments  Copper 360

Good diversification

The 3 months correlation between Astoria and Copper is -0.03. 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 0.54 times more return on investment than Copper 360. However, Astoria Investments is 1.85 times less risky than Copper 360. It trades about 0.03 of its potential returns per unit of risk. Copper 360 is currently generating about 0.0 per unit of risk. If you would invest  71,500  in Astoria Investments on December 4, 2024 and sell it today you would earn a total of  11,000  from holding Astoria Investments or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.52%
Values	Daily Returns

Astoria Investments  vs.  Copper 360

Astoria Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astoria Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Astoria Investments is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Copper 360

Risk-Adjusted Performance

Very Weak

Over the last 90 days Copper 360 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.

The idea behind Astoria Investments and Copper 360 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.