Correlation Between Astral Foods and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both Astral Foods and COFCO Joycome 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 Astral Foods and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods Limited and COFCO Joycome Foods, you can compare the effects of market volatilities on Astral Foods and COFCO Joycome 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 Astral Foods with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and COFCO Joycome.
Diversification Opportunities for Astral Foods and COFCO Joycome
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and COFCO is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and Astral Foods 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 Astral Foods Limited are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of Astral Foods i.e., Astral Foods and COFCO Joycome go up and down completely randomly.
Pair Corralation between Astral Foods and COFCO Joycome
Assuming the 90 days trading horizon Astral Foods is expected to generate 5.73 times less return on investment than COFCO Joycome. But when comparing it to its historical volatility, Astral Foods Limited is 2.34 times less risky than COFCO Joycome. It trades about 0.05 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16.00 in COFCO Joycome Foods on September 24, 2024 and sell it today you would earn a total of 1.00 from holding COFCO Joycome Foods or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. COFCO Joycome Foods
Performance |
| Timeline |
| Astral Foods Limited |
| COFCO Joycome Foods |
Astral Foods and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and COFCO Joycome
The main advantage of trading using opposite Astral Foods and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| Astral Foods vs. Motorcar Parts of | Astral Foods vs. NISSAN CHEMICAL IND | Astral Foods vs. Quaker Chemical | Astral Foods vs. CHEMICAL INDUSTRIES |
| COFCO Joycome vs. Mowi ASA | COFCO Joycome vs. LEROY SEAFOOD GRUNSPADR | COFCO Joycome vs. Lery Seafood Group | COFCO Joycome vs. Nisshin Seifun Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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