Correlation Between Astral Foods and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both Astral Foods and CONAGRA 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 Astral Foods and CONAGRA FOODS 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 CONAGRA FOODS, you can compare the effects of market volatilities on Astral Foods and CONAGRA 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 Astral Foods with a short position of CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and CONAGRA FOODS.
Diversification Opportunities for Astral Foods and CONAGRA FOODS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and CONAGRA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of Astral Foods i.e., Astral Foods and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between Astral Foods and CONAGRA FOODS
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 1.21 times more return on investment than CONAGRA FOODS. However, Astral Foods is 1.21 times more volatile than CONAGRA FOODS. It trades about 0.04 of its potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.04 per unit of risk. If you would invest 885.00 in Astral Foods Limited on October 14, 2024 and sell it today you would earn a total of 25.00 from holding Astral Foods Limited or generate 2.82% 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. CONAGRA FOODS
Performance |
| Timeline |
| Astral Foods Limited |
| CONAGRA FOODS |
Astral Foods and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and CONAGRA FOODS
The main advantage of trading using opposite Astral Foods and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, CONAGRA 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| Astral Foods vs. NIGHTINGALE HEALTH EO | Astral Foods vs. GRUPO CARSO A1 | Astral Foods vs. Planet Fitness | Astral Foods vs. Geely Automobile Holdings |
| CONAGRA FOODS vs. TOMBADOR IRON LTD | CONAGRA FOODS vs. Magnachip Semiconductor | CONAGRA FOODS vs. Khiron Life Sciences | CONAGRA FOODS vs. ANGANG STEEL H |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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