Correlation Between Astika Holdings and Amerityre Corp

Can any of the company-specific risk be diversified away by investing in both Astika Holdings and Amerityre Corp 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 Astika Holdings and Amerityre Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astika Holdings and Amerityre Corp, you can compare the effects of market volatilities on Astika Holdings and Amerityre Corp 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 Astika Holdings with a short position of Amerityre Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astika Holdings and Amerityre Corp.

Diversification Opportunities for Astika Holdings and Amerityre Corp

0.0

Correlation Coefficient

Astika Holdings  Amerityre Corp

Pay attention - limited upside

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

Pair Corralation between Astika Holdings and Amerityre Corp

If you would invest (100.00) in Amerityre Corp on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Amerityre Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astika Holdings  vs.  Amerityre Corp

Astika Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astika Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Amerityre Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amerityre Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amerityre Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astika Holdings and Amerityre Corp

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

The idea behind Astika Holdings and Amerityre Corp 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.