Correlation Between Astral Foods and Retail Estates
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Retail Estates 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 Retail Estates 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 Retail Estates NV, you can compare the effects of market volatilities on Astral Foods and Retail Estates 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 Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Retail Estates.
Diversification Opportunities for Astral Foods and Retail Estates
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Astral and Retail is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Retail Estates NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates NV 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 Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates NV has no effect on the direction of Astral Foods i.e., Astral Foods and Retail Estates go up and down completely randomly.
Pair Corralation between Astral Foods and Retail Estates
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 1.59 times more return on investment than Retail Estates. However, Astral Foods is 1.59 times more volatile than Retail Estates NV. It trades about 0.0 of its potential returns per unit of risk. Retail Estates NV is currently generating about -0.26 per unit of risk. If you would invest 955.00 in Astral Foods Limited on August 28, 2024 and sell it today you would lose (5.00) from holding Astral Foods Limited or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. Retail Estates NV
Performance |
| Timeline |
| Astral Foods Limited |
| Retail Estates NV |
Astral Foods and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Retail Estates
The main advantage of trading using opposite Astral Foods and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech | Astral Foods vs. SIVERS SEMICONDUCTORS AB |
| Retail Estates vs. GAMING FAC SA | Retail Estates vs. Media and Games | Retail Estates vs. EAST SIDE GAMES | Retail Estates vs. CI GAMES SA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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