Correlation Between Astral Foods and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Impala Platinum 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 Impala Platinum 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 Impala Platinum Holdings, you can compare the effects of market volatilities on Astral Foods and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Impala Platinum.
Diversification Opportunities for Astral Foods and Impala Platinum
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and Impala is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Astral Foods i.e., Astral Foods and Impala Platinum go up and down completely randomly.
Pair Corralation between Astral Foods and Impala Platinum
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 0.73 times more return on investment than Impala Platinum. However, Astral Foods Limited is 1.37 times less risky than Impala Platinum. It trades about 0.39 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about 0.0 per unit of risk. If you would invest 835.00 in Astral Foods Limited on September 14, 2024 and sell it today you would earn a total of 150.00 from holding Astral Foods Limited or generate 17.96% 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. Impala Platinum Holdings
Performance |
| Timeline |
| Astral Foods Limited |
| Impala Platinum Holdings |
Astral Foods and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Impala Platinum
The main advantage of trading using opposite Astral Foods and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Astral Foods vs. CN MODERN DAIRY | Astral Foods vs. Suntory Beverage Food | Astral Foods vs. Charoen Pokphand Foods | Astral Foods vs. BOSTON BEER A |
| Impala Platinum vs. PREMIER FOODS | Impala Platinum vs. British American Tobacco | Impala Platinum vs. Astral Foods Limited | Impala Platinum vs. Thai Beverage Public |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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