Correlation Between Astral Foods and BTU Metals
Can any of the company-specific risk be diversified away by investing in both Astral Foods and BTU Metals 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 BTU Metals 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 BTU Metals Corp, you can compare the effects of market volatilities on Astral Foods and BTU Metals 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 BTU Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and BTU Metals.
Diversification Opportunities for Astral Foods and BTU Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astral and BTU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and BTU Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTU Metals 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 BTU Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTU Metals Corp has no effect on the direction of Astral Foods i.e., Astral Foods and BTU Metals go up and down completely randomly.
Pair Corralation between Astral Foods and BTU Metals
If you would invest 710.00 in Astral Foods Limited on November 2, 2024 and sell it today you would earn a total of 29.00 from holding Astral Foods Limited or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Astral Foods Limited vs. BTU Metals Corp
Performance |
| Timeline |
| Astral Foods Limited |
| BTU Metals Corp |
Astral Foods and BTU Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and BTU Metals
The main advantage of trading using opposite Astral Foods and BTU Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, BTU Metals 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 BTU Metals will offset losses from the drop in BTU Metals' long position.| Astral Foods vs. Austevoll Seafood ASA | Astral Foods vs. Golden Agri Resources | Astral Foods vs. SalMar ASA | Astral Foods vs. Wilmar International |
| BTU Metals vs. Lifeway Foods | BTU Metals vs. Robix Environmental Technologies | BTU Metals vs. NH Foods Ltd | BTU Metals vs. Summit Environmental |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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