Correlation Between Astral Foods and Fortinet
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Fortinet 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 Fortinet 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 Fortinet, you can compare the effects of market volatilities on Astral Foods and Fortinet 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 Fortinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Fortinet.
Diversification Opportunities for Astral Foods and Fortinet
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astral and Fortinet is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet 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 Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of Astral Foods i.e., Astral Foods and Fortinet go up and down completely randomly.
Pair Corralation between Astral Foods and Fortinet
Assuming the 90 days trading horizon Astral Foods Limited is expected to under-perform the Fortinet. In addition to that, Astral Foods is 1.12 times more volatile than Fortinet. It trades about -0.19 of its total potential returns per unit of risk. Fortinet is currently generating about 0.07 per unit of volatility. If you would invest 9,156 in Fortinet on October 10, 2024 and sell it today you would earn a total of 151.00 from holding Fortinet or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. Fortinet
Performance |
| Timeline |
| Astral Foods Limited |
| Fortinet |
Astral Foods and Fortinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Fortinet
The main advantage of trading using opposite Astral Foods and Fortinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Fortinet 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 Fortinet will offset losses from the drop in Fortinet's long position.| Astral Foods vs. Archer Daniels Midland | Astral Foods vs. Tyson Foods | Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings |
| Fortinet vs. GEELY AUTOMOBILE | Fortinet vs. ecotel communication ag | Fortinet vs. TERADATA | Fortinet vs. DATA MODUL |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |