Correlation Between COFCO Joycome and Astral Foods
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Astral Foods 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 COFCO Joycome and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Astral Foods Limited, you can compare the effects of market volatilities on COFCO Joycome and Astral Foods 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 COFCO Joycome with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Astral Foods.
Diversification Opportunities for COFCO Joycome and Astral Foods
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and Astral is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Astral Foods go up and down completely randomly.
Pair Corralation between COFCO Joycome and Astral Foods
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Astral Foods. In addition to that, COFCO Joycome is 2.26 times more volatile than Astral Foods Limited. It trades about -0.23 of its total potential returns per unit of risk. Astral Foods Limited is currently generating about -0.32 per unit of volatility. If you would invest 985.00 in Astral Foods Limited on October 12, 2024 and sell it today you would lose (70.00) from holding Astral Foods Limited or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Astral Foods Limited
Performance |
| Timeline |
| COFCO Joycome Foods |
| Astral Foods Limited |
COFCO Joycome and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Astral Foods
The main advantage of trading using opposite COFCO Joycome and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| COFCO Joycome vs. Fukuyama Transporting Co | COFCO Joycome vs. USWE SPORTS AB | COFCO Joycome vs. Yuexiu Transport Infrastructure | COFCO Joycome vs. Gaztransport Technigaz SA |
| Astral Foods vs. PDS Biotechnology Corp | Astral Foods vs. FAST RETAIL ADR | Astral Foods vs. Goosehead Insurance | Astral Foods vs. HANOVER INSURANCE |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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