Correlation Between Astoria Investments and MultiChoice
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and MultiChoice 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 MultiChoice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and MultiChoice Group, you can compare the effects of market volatilities on Astoria Investments and MultiChoice 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 MultiChoice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and MultiChoice.
Diversification Opportunities for Astoria Investments and MultiChoice
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astoria and MultiChoice is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and MultiChoice Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MultiChoice 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 MultiChoice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MultiChoice Group has no effect on the direction of Astoria Investments i.e., Astoria Investments and MultiChoice go up and down completely randomly.
Pair Corralation between Astoria Investments and MultiChoice
Assuming the 90 days trading horizon Astoria Investments is expected to under-perform the MultiChoice. In addition to that, Astoria Investments is 3.48 times more volatile than MultiChoice Group. It trades about -0.04 of its total potential returns per unit of risk. MultiChoice Group is currently generating about -0.03 per unit of volatility. If you would invest 1,090,000 in MultiChoice Group on September 29, 2024 and sell it today you would lose (12,800) from holding MultiChoice Group or give up 1.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Astoria Investments vs. MultiChoice Group
Performance |
Timeline |
Astoria Investments |
MultiChoice Group |
Astoria Investments and MultiChoice Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astoria Investments and MultiChoice
The main advantage of trading using opposite Astoria Investments and MultiChoice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, MultiChoice 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 MultiChoice will offset losses from the drop in MultiChoice's long position.Astoria Investments vs. Remgro | Astoria Investments vs. Reinet Investments SCA | Astoria Investments vs. African Rainbow Capital | Astoria Investments vs. Brait SE |
MultiChoice vs. E Media Holdings | MultiChoice vs. eMedia Holdings Limited | MultiChoice vs. We Buy Cars | MultiChoice vs. Argent |
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
Stocks Directory Find actively traded stocks across global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Transaction History View history of all your transactions and understand their impact on performance | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |