Correlation Between Astoria Quality and IShares Trust

Can any of the company-specific risk be diversified away by investing in both Astoria Quality and IShares Trust 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 Quality and IShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astoria Quality Kings and iShares Trust , you can compare the effects of market volatilities on Astoria Quality and IShares Trust 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 Quality with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Quality and IShares Trust.

Diversification Opportunities for Astoria Quality and IShares Trust

0.9

Correlation Coefficient

Astoria Quality  IShares Trust

Almost no diversification

The 3 months correlation between Astoria and IShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Quality Kings and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and Astoria Quality 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 Quality Kings are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Astoria Quality i.e., Astoria Quality and IShares Trust go up and down completely randomly.

Pair Corralation between Astoria Quality and IShares Trust

Considering the 90-day investment horizon Astoria Quality Kings is expected to generate 0.64 times more return on investment than IShares Trust. However, Astoria Quality Kings is 1.55 times less risky than IShares Trust. It trades about -0.07 of its potential returns per unit of risk. iShares Trust is currently generating about -0.13 per unit of risk. If you would invest  3,045  in Astoria Quality Kings on December 29, 2024 and sell it today you would lose (140.00) from holding Astoria Quality Kings or give up 4.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Astoria Quality Kings  vs.  iShares Trust

Astoria Quality Kings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astoria Quality Kings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Astoria Quality is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

iShares Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Pair Trading with Astoria Quality and IShares Trust

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

The idea behind Astoria Quality Kings and iShares Trust 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.