Correlation Between Astral Foods and GREENLIGHT CAP
Can any of the company-specific risk be diversified away by investing in both Astral Foods and GREENLIGHT CAP 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 GREENLIGHT CAP 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 GREENLIGHT CAP RE, you can compare the effects of market volatilities on Astral Foods and GREENLIGHT CAP 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 GREENLIGHT CAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and GREENLIGHT CAP.
Diversification Opportunities for Astral Foods and GREENLIGHT CAP
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astral and GREENLIGHT is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and GREENLIGHT CAP RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENLIGHT CAP RE 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 GREENLIGHT CAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENLIGHT CAP RE has no effect on the direction of Astral Foods i.e., Astral Foods and GREENLIGHT CAP go up and down completely randomly.
Pair Corralation between Astral Foods and GREENLIGHT CAP
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 1.29 times more return on investment than GREENLIGHT CAP. However, Astral Foods is 1.29 times more volatile than GREENLIGHT CAP RE. It trades about 0.05 of its potential returns per unit of risk. GREENLIGHT CAP RE is currently generating about -0.35 per unit of risk. If you would invest 945.00 in Astral Foods Limited on September 24, 2024 and sell it today you would earn a total of 10.00 from holding Astral Foods Limited or generate 1.06% 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. GREENLIGHT CAP RE
Performance |
| Timeline |
| Astral Foods Limited |
| GREENLIGHT CAP RE |
Astral Foods and GREENLIGHT CAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and GREENLIGHT CAP
The main advantage of trading using opposite Astral Foods and GREENLIGHT CAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, GREENLIGHT CAP 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 GREENLIGHT CAP will offset losses from the drop in GREENLIGHT CAP's long position.| Astral Foods vs. Motorcar Parts of | Astral Foods vs. NISSAN CHEMICAL IND | Astral Foods vs. Quaker Chemical | Astral Foods vs. CHEMICAL INDUSTRIES |
| GREENLIGHT CAP vs. COFCO Joycome Foods | GREENLIGHT CAP vs. Tower One Wireless | GREENLIGHT CAP vs. Ebro Foods SA | GREENLIGHT CAP vs. Astral Foods Limited |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |