Correlation Between Astarta Holding and Stalprodukt

Can any of the company-specific risk be diversified away by investing in both Astarta Holding and Stalprodukt 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 Stalprodukt 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 Stalprodukt SA, you can compare the effects of market volatilities on Astarta Holding and Stalprodukt 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 Stalprodukt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and Stalprodukt.

Diversification Opportunities for Astarta Holding and Stalprodukt

-0.7

Correlation Coefficient

Astarta Holding  Stalprodukt

Excellent diversification

The 3 months correlation between Astarta and Stalprodukt is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and Stalprodukt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalprodukt 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 Stalprodukt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalprodukt SA has no effect on the direction of Astarta Holding i.e., Astarta Holding and Stalprodukt go up and down completely randomly.

Pair Corralation between Astarta Holding and Stalprodukt

If you would invest  22,350  in Stalprodukt SA on October 10, 2024 and sell it today you would earn a total of  50.00  from holding Stalprodukt SA or generate 0.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Astarta Holding NV  vs.  Stalprodukt SA

Astarta Holding NV

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Astarta Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Astarta Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Stalprodukt SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stalprodukt SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Astarta Holding and Stalprodukt

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

The idea behind Astarta Holding NV and Stalprodukt 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.