Correlation Between Astarta Holding and X Trade

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

Diversification Opportunities for Astarta Holding and X Trade

0.82

Correlation Coefficient

Astarta Holding  X Trade

Very poor diversification

The 3 months correlation between Astarta and XTB is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Astarta Holding i.e., Astarta Holding and X Trade go up and down completely randomly.

Pair Corralation between Astarta Holding and X Trade

Assuming the 90 days trading horizon Astarta Holding NV is expected to under-perform the X Trade. But the stock apears to be less risky and, when comparing its historical volatility, Astarta Holding NV is 1.16 times less risky than X Trade. The stock trades about 0.0 of its potential returns per unit of risk. The X Trade Brokers is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  7,056  in X Trade Brokers on October 27, 2024 and sell it today you would earn a total of  564.00  from holding X Trade Brokers or generate 7.99% return on investment over 90 days.

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

Astarta Holding NV  vs.  X Trade Brokers

Astarta Holding NV

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astarta Holding NV are ranked lower than 17 (%) 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.

X Trade Brokers

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in X Trade Brokers are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, X Trade reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astarta Holding and X Trade

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

The idea behind Astarta Holding NV and X Trade Brokers 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.