Correlation Between Astral Foods and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Astral Foods and BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY, you can compare the effects of market volatilities on Astral Foods and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and BANK HANDLOWY.
Diversification Opportunities for Astral Foods and BANK HANDLOWY
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astral and BANK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Astral Foods i.e., Astral Foods and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Astral Foods and BANK HANDLOWY
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 4.42 times more return on investment than BANK HANDLOWY. However, Astral Foods is 4.42 times more volatile than BANK HANDLOWY. It trades about 0.22 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about -0.36 per unit of risk. If you would invest 865.00 in Astral Foods Limited on August 28, 2024 and sell it today you would earn a total of 80.00 from holding Astral Foods Limited or generate 9.25% 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. BANK HANDLOWY
Performance |
| Timeline |
| Astral Foods Limited |
| BANK HANDLOWY |
Astral Foods and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and BANK HANDLOWY
The main advantage of trading using opposite Astral Foods and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech | Astral Foods vs. SIVERS SEMICONDUCTORS AB |
| BANK HANDLOWY vs. TIANDE CHEMICAL | BANK HANDLOWY vs. ECHO INVESTMENT ZY | BANK HANDLOWY vs. MGIC INVESTMENT | BANK HANDLOWY vs. Marie Brizard Wine |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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