Correlation Between Astral Foods and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Astral Foods and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Astral Foods and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and GRIFFIN MINING.
Diversification Opportunities for Astral Foods and GRIFFIN MINING
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and GRIFFIN is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Astral Foods i.e., Astral Foods and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Astral Foods and GRIFFIN MINING
Assuming the 90 days trading horizon Astral Foods Limited is expected to under-perform the GRIFFIN MINING. But the stock apears to be less risky and, when comparing its historical volatility, Astral Foods Limited is 1.45 times less risky than GRIFFIN MINING. The stock trades about -0.32 of its potential returns per unit of risk. The GRIFFIN MINING LTD is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 172.00 in GRIFFIN MINING LTD on October 12, 2024 and sell it today you would earn a total of 12.00 from holding GRIFFIN MINING LTD or generate 6.98% 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. GRIFFIN MINING LTD
Performance |
| Timeline |
| Astral Foods Limited |
| GRIFFIN MINING LTD |
Astral Foods and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and GRIFFIN MINING
The main advantage of trading using opposite Astral Foods and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Astral Foods vs. BORR DRILLING NEW | Astral Foods vs. Virtu Financial | Astral Foods vs. SOUTHWEST AIRLINES | Astral Foods vs. Synovus Financial Corp |
| GRIFFIN MINING vs. INTERSHOP Communications Aktiengesellschaft | GRIFFIN MINING vs. Globex Mining Enterprises | GRIFFIN MINING vs. Geely Automobile Holdings | GRIFFIN MINING vs. Yanzhou Coal Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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