Correlation Between PHOENIX BEVERAGES and ASTORIA INVESTMENT

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

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

Diversification Opportunities for PHOENIX BEVERAGES and ASTORIA INVESTMENT

0.0

Correlation Coefficient

PHOENIX BEVERAGES  ASTORIA INVESTMENT

Pay attention - limited upside

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

Pair Corralation between PHOENIX BEVERAGES and ASTORIA INVESTMENT

If you would invest  50,100  in PHOENIX BEVERAGES LTD on September 13, 2024 and sell it today you would earn a total of  4,000  from holding PHOENIX BEVERAGES LTD or generate 7.98% return on investment over 90 days.

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

PHOENIX BEVERAGES LTD  vs.  ASTORIA INVESTMENT LTD

PHOENIX BEVERAGES LTD

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX BEVERAGES LTD are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, PHOENIX BEVERAGES may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ASTORIA INVESTMENT LTD

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with PHOENIX BEVERAGES and ASTORIA INVESTMENT

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

The idea behind PHOENIX BEVERAGES LTD and ASTORIA INVESTMENT 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.