Correlation Between Astoria Investments and Gemfields
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Gemfields 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 Gemfields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Gemfields Group, you can compare the effects of market volatilities on Astoria Investments and Gemfields 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 Gemfields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Gemfields.
Diversification Opportunities for Astoria Investments and Gemfields
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astoria and Gemfields is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Gemfields Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group 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 Gemfields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of Astoria Investments i.e., Astoria Investments and Gemfields go up and down completely randomly.
Pair Corralation between Astoria Investments and Gemfields
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.04 times more return on investment than Gemfields. However, Astoria Investments is 1.04 times more volatile than Gemfields Group. It trades about 0.03 of its potential returns per unit of risk. Gemfields Group is currently generating about -0.06 per unit of risk. If you would invest 81,900 in Astoria Investments on September 24, 2024 and sell it today you would earn a total of 3,100 from holding Astoria Investments or generate 3.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Astoria Investments vs. Gemfields Group
Performance |
Timeline |
Astoria Investments |
Gemfields Group |
Astoria Investments and Gemfields Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astoria Investments and Gemfields
The main advantage of trading using opposite Astoria Investments and Gemfields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Gemfields 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 Gemfields will offset losses from the drop in Gemfields' long position.Astoria Investments vs. Remgro | Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. African Rainbow Capital | Astoria Investments vs. Brait SE |
Gemfields vs. Impala Platinum Holdings | Gemfields vs. Sasol Ltd Bee | Gemfields vs. Growthpoint Properties | Gemfields vs. AfricaRhodium ETF |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Stocks Directory Find actively traded stocks across global markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |