Correlation Between Astral Foods and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on Astral Foods and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Compagnie Plastic.
Diversification Opportunities for Astral Foods and Compagnie Plastic
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astral and Compagnie is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Astral Foods i.e., Astral Foods and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Astral Foods and Compagnie Plastic
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 0.83 times more return on investment than Compagnie Plastic. However, Astral Foods Limited is 1.21 times less risky than Compagnie Plastic. It trades about 0.24 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.19 per unit of risk. If you would invest 860.00 in Astral Foods Limited on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Astral Foods Limited or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Astral Foods Limited |
| Compagnie Plastic Omnium |
Astral Foods and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Compagnie Plastic
The main advantage of trading using opposite Astral Foods and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| Astral Foods vs. SalMar ASA | Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech |
| Compagnie Plastic vs. PT Astra International | Compagnie Plastic vs. Magna International | Compagnie Plastic vs. Fuyao Glass Industry | Compagnie Plastic vs. Superior Plus Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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