Correlation Between Astarta Holding and Movie Games

Can any of the company-specific risk be diversified away by investing in both Astarta Holding and Movie Games 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 Astarta Holding and Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astarta Holding NV and Movie Games SA, you can compare the effects of market volatilities on Astarta Holding and Movie Games 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 Astarta Holding with a short position of Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and Movie Games.

Diversification Opportunities for Astarta Holding and Movie Games

0.22

Correlation Coefficient

Astarta Holding  Movie Games

Modest diversification

The 3 months correlation between Astarta and Movie is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA and Astarta Holding 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 Astarta Holding NV are associated (or correlated) with Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of Astarta Holding i.e., Astarta Holding and Movie Games go up and down completely randomly.

Pair Corralation between Astarta Holding and Movie Games

Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 1.37 times more return on investment than Movie Games. However, Astarta Holding is 1.37 times more volatile than Movie Games SA. It trades about 0.2 of its potential returns per unit of risk. Movie Games SA is currently generating about 0.03 per unit of risk. If you would invest  3,940  in Astarta Holding NV on December 22, 2024 and sell it today you would earn a total of  1,960  from holding Astarta Holding NV or generate 49.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Astarta Holding NV  vs.  Movie Games SA

Astarta Holding NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astarta Holding NV are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Astarta Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Movie Games SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Movie Games SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Movie Games is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Astarta Holding and Movie Games

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

The idea behind Astarta Holding NV and Movie Games SA 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.