Correlation Between ASTORIA INVESTMENT and UNITED BUS

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

Diversification Opportunities for ASTORIA INVESTMENT and UNITED BUS

-1.0

Correlation Coefficient

ASTORIA INVESTMENT  UNITED BUS

Pay attention - limited upside

The 3 months correlation between ASTORIA and UNITED is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding ASTORIA INVESTMENT LTD and UNITED BUS SERVICE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BUS SERVICE 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 UNITED BUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BUS SERVICE has no effect on the direction of ASTORIA INVESTMENT i.e., ASTORIA INVESTMENT and UNITED BUS go up and down completely randomly.

Pair Corralation between ASTORIA INVESTMENT and UNITED BUS

If you would invest  4,160  in UNITED BUS SERVICE on September 14, 2024 and sell it today you would earn a total of  0.00  from holding UNITED BUS SERVICE or generate 0.0% return on investment over 90 days.

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

ASTORIA INVESTMENT LTD  vs.  UNITED BUS SERVICE

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.

UNITED BUS SERVICE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNITED BUS SERVICE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, UNITED BUS is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ASTORIA INVESTMENT and UNITED BUS

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

The idea behind ASTORIA INVESTMENT LTD and UNITED BUS SERVICE 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.