Correlation Between Astral Foods and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Astral Foods and SLR Investment 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 SLR Investment 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 SLR Investment Corp, you can compare the effects of market volatilities on Astral Foods and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and SLR Investment.
Diversification Opportunities for Astral Foods and SLR Investment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astral and SLR is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Astral Foods i.e., Astral Foods and SLR Investment go up and down completely randomly.
Pair Corralation between Astral Foods and SLR Investment
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 6.09 times more return on investment than SLR Investment. However, Astral Foods is 6.09 times more volatile than SLR Investment Corp. It trades about 0.07 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.01 per unit of risk. If you would invest 328.00 in Astral Foods Limited on January 11, 2025 and sell it today you would earn a total of 382.00 from holding Astral Foods Limited or generate 116.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Astral Foods Limited vs. SLR Investment Corp
Performance |
| Timeline |
| Astral Foods Limited |
| SLR Investment Corp |
Astral Foods and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and SLR Investment
The main advantage of trading using opposite Astral Foods and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| Astral Foods vs. Emperor Entertainment Hotel | Astral Foods vs. Seven West Media | Astral Foods vs. AFRICAN MEDIA ENT | Astral Foods vs. Prosiebensat 1 Media |
| SLR Investment vs. GERATHERM MEDICAL | SLR Investment vs. COMPUGROUP MEDICAL V | SLR Investment vs. SPECTRAL MEDICAL | SLR Investment vs. NXP Semiconductors NV |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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