Correlation Between Astral Foods and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Astral Foods and VIENNA INSURANCE 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 VIENNA INSURANCE 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 VIENNA INSURANCE GR, you can compare the effects of market volatilities on Astral Foods and VIENNA INSURANCE 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 VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and VIENNA INSURANCE.
Diversification Opportunities for Astral Foods and VIENNA INSURANCE
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astral and VIENNA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE 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 VIENNA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIENNA INSURANCE has no effect on the direction of Astral Foods i.e., Astral Foods and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between Astral Foods and VIENNA INSURANCE
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 3.6 times more return on investment than VIENNA INSURANCE. However, Astral Foods is 3.6 times more volatile than VIENNA INSURANCE GR. It trades about 0.02 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.08 per unit of risk. If you would invest 805.00 in Astral Foods Limited on October 11, 2024 and sell it today you would earn a total of 100.00 from holding Astral Foods Limited or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods Limited vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| Astral Foods Limited |
| VIENNA INSURANCE |
Astral Foods and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and VIENNA INSURANCE
The main advantage of trading using opposite Astral Foods and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, VIENNA INSURANCE 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 VIENNA INSURANCE will offset losses from the drop in VIENNA INSURANCE's long position.| Astral Foods vs. BORR DRILLING NEW | Astral Foods vs. Virtu Financial | Astral Foods vs. SOUTHWEST AIRLINES | Astral Foods vs. Synovus Financial Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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