Correlation Between ASTORIA INVESTMENT and PHOENIX BEVERAGES

Can any of the company-specific risk be diversified away by investing in both ASTORIA INVESTMENT and PHOENIX BEVERAGES 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 INVESTMENT and PHOENIX BEVERAGES into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASTORIA INVESTMENT LTD and PHOENIX BEVERAGES LTD, you can compare the effects of market volatilities on ASTORIA INVESTMENT and PHOENIX BEVERAGES 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 INVESTMENT with a short position of PHOENIX BEVERAGES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORIA INVESTMENT and PHOENIX BEVERAGES.

Diversification Opportunities for ASTORIA INVESTMENT and PHOENIX BEVERAGES

0.0

Correlation Coefficient

ASTORIA INVESTMENT  PHOENIX BEVERAGES

Pay attention - limited upside

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

Pair Corralation between ASTORIA INVESTMENT and PHOENIX BEVERAGES

If you would invest  53,700  in PHOENIX BEVERAGES LTD on December 4, 2024 and sell it today you would earn a total of  6,500  from holding PHOENIX BEVERAGES LTD or generate 12.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASTORIA INVESTMENT LTD  vs.  PHOENIX BEVERAGES LTD

ASTORIA INVESTMENT LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASTORIA INVESTMENT LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, ASTORIA INVESTMENT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

PHOENIX BEVERAGES LTD

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX BEVERAGES LTD are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, PHOENIX BEVERAGES displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASTORIA INVESTMENT and PHOENIX BEVERAGES

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

The idea behind ASTORIA INVESTMENT LTD and PHOENIX BEVERAGES LTD 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.