Correlation Between Astral Foods and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on Astral Foods and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Hyster Yale.
Diversification Opportunities for Astral Foods and Hyster Yale
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and Hyster is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Astral Foods i.e., Astral Foods and Hyster Yale go up and down completely randomly.
Pair Corralation between Astral Foods and Hyster Yale
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 21.1 times more return on investment than Hyster Yale. However, Astral Foods is 21.1 times more volatile than Hyster Yale Materials Handling. It trades about 0.22 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.23 per unit of risk. If you would invest 378.00 in Astral Foods Limited on October 31, 2024 and sell it today you would earn a total of 502.00 from holding Astral Foods Limited or generate 132.8% 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. Hyster Yale Materials Handling
Performance |
| Timeline |
| Astral Foods Limited |
| Hyster Yale Materials |
Astral Foods and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Hyster Yale
The main advantage of trading using opposite Astral Foods and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Astral Foods vs. SINGAPORE AIRLINES | Astral Foods vs. Rayonier Advanced Materials | Astral Foods vs. APPLIED MATERIALS | Astral Foods vs. Eagle Materials |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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