Correlation Between Virtu Financial and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Virtu Financial 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 Virtu Financial and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Astral Foods Limited, you can compare the effects of market volatilities on Virtu Financial 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 Virtu Financial with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Astral Foods.
Diversification Opportunities for Virtu Financial and Astral Foods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtu and Astral is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial 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 Virtu Financial 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 Virtu Financial 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 Virtu Financial i.e., Virtu Financial and Astral Foods go up and down completely randomly.
Pair Corralation between Virtu Financial and Astral Foods
Assuming the 90 days horizon Virtu Financial is expected to generate 41.86 times less return on investment than Astral Foods. But when comparing it to its historical volatility, Virtu Financial is 16.84 times less risky than Astral Foods. It trades about 0.09 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 382.00 in Astral Foods Limited on October 26, 2024 and sell it today you would earn a total of 493.00 from holding Astral Foods Limited or generate 129.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. Astral Foods Limited
Performance |
| Timeline |
| Virtu Financial |
| Astral Foods Limited |
Virtu Financial and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Astral Foods
The main advantage of trading using opposite Virtu Financial and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial 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.| Virtu Financial vs. CAREER EDUCATION | Virtu Financial vs. CHINA EDUCATION GROUP | Virtu Financial vs. Tencent Music Entertainment | Virtu Financial vs. DEVRY EDUCATION GRP |
| Astral Foods vs. TOREX SEMICONDUCTOR LTD | Astral Foods vs. GALENA MINING LTD | Astral Foods vs. ELMOS SEMICONDUCTOR | Astral Foods vs. Harmony Gold Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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