Correlation Between Astral Foods and Norwegian Air
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Norwegian Air 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 Norwegian Air 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 Norwegian Air Shuttle, you can compare the effects of market volatilities on Astral Foods and Norwegian Air 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 Norwegian Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Norwegian Air.
Diversification Opportunities for Astral Foods and Norwegian Air
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astral and Norwegian is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Norwegian Air Shuttle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norwegian Air Shuttle 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 Norwegian Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norwegian Air Shuttle has no effect on the direction of Astral Foods i.e., Astral Foods and Norwegian Air go up and down completely randomly.
Pair Corralation between Astral Foods and Norwegian Air
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 0.65 times more return on investment than Norwegian Air. However, Astral Foods Limited is 1.55 times less risky than Norwegian Air. It trades about 0.24 of its potential returns per unit of risk. Norwegian Air Shuttle is currently generating about 0.15 per unit of risk. If you would invest 860.00 in Astral Foods Limited on September 2, 2024 and sell it today you would earn a total of 90.00 from holding Astral Foods Limited or generate 10.47% 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. Norwegian Air Shuttle
Performance |
| Timeline |
| Astral Foods Limited |
| Norwegian Air Shuttle |
Astral Foods and Norwegian Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Norwegian Air
The main advantage of trading using opposite Astral Foods and Norwegian Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Norwegian Air 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 Norwegian Air will offset losses from the drop in Norwegian Air's long position.| Astral Foods vs. Vastned Retail NV | Astral Foods vs. TFS FINANCIAL | Astral Foods vs. Heartland Financial USA | Astral Foods vs. Mizuho Financial Group |
| Norwegian Air vs. Sterling Construction | Norwegian Air vs. AUST AGRICULTURAL | Norwegian Air vs. CENTURIA OFFICE REIT | Norwegian Air vs. Infrastrutture Wireless Italiane |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |