Correlation Between Astral Foods and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on Astral Foods and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Meiko Electronics.
Diversification Opportunities for Astral Foods and Meiko Electronics
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astral and Meiko is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of Astral Foods i.e., Astral Foods and Meiko Electronics go up and down completely randomly.
Pair Corralation between Astral Foods and Meiko Electronics
Assuming the 90 days trading horizon Astral Foods is expected to generate 1.92 times less return on investment than Meiko Electronics. But when comparing it to its historical volatility, Astral Foods Limited is 2.04 times less risky than Meiko Electronics. It trades about 0.12 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,120 in Meiko Electronics Co on September 3, 2024 and sell it today you would earn a total of 2,580 from holding Meiko Electronics Co or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. Meiko Electronics Co
Performance |
| Timeline |
| Astral Foods Limited |
| Meiko Electronics |
Astral Foods and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Meiko Electronics
The main advantage of trading using opposite Astral Foods and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.| Astral Foods vs. Archer Daniels Midland | Astral Foods vs. Tyson Foods | Astral Foods vs. Wilmar International Limited | Astral Foods vs. SalMar ASA |
| Meiko Electronics vs. KCE EL PCL | Meiko Electronics vs. Benchmark Electronics | Meiko Electronics vs. Superior Plus Corp | Meiko Electronics vs. NMI Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |