Correlation Between Astral Foods and Apple
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Astral Foods and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Apple.
Diversification Opportunities for Astral Foods and Apple
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and Apple is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Astral Foods i.e., Astral Foods and Apple go up and down completely randomly.
Pair Corralation between Astral Foods and Apple
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 6.48 times more return on investment than Apple. However, Astral Foods is 6.48 times more volatile than Apple Inc. It trades about 0.03 of its potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of risk. If you would invest 905.00 in Astral Foods Limited on August 24, 2024 and sell it today you would lose (25.00) from holding Astral Foods Limited or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Astral Foods Limited vs. Apple Inc
Performance |
| Timeline |
| Astral Foods Limited |
| Apple Inc |
Astral Foods and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Apple
The main advantage of trading using opposite Astral Foods and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Astral Foods vs. Mitsui Chemicals | Astral Foods vs. INDOFOOD AGRI RES | Astral Foods vs. Soken Chemical Engineering | Astral Foods vs. Siamgas And Petrochemicals |
| Apple vs. REVO INSURANCE SPA | Apple vs. TreeHouse Foods | Apple vs. Astral Foods Limited | Apple vs. INDOFOOD AGRI RES |
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 CEOs Directory module to screen CEOs from public companies around the world.
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