Correlation Between Astoria Investments and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Astoria Investments and Astral Foods 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 Astoria Investments and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Investments and Astral Foods, you can compare the effects of market volatilities on Astoria Investments and Astral Foods 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 Astoria Investments with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Investments and Astral Foods.
Diversification Opportunities for Astoria Investments and Astral Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astoria and Astral is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Investments and Astral Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods and Astoria Investments 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 Astoria Investments are associated (or correlated) with Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods has no effect on the direction of Astoria Investments i.e., Astoria Investments and Astral Foods go up and down completely randomly.
Pair Corralation between Astoria Investments and Astral Foods
Assuming the 90 days trading horizon Astoria Investments is expected to generate 1.84 times less return on investment than Astral Foods. In addition to that, Astoria Investments is 2.18 times more volatile than Astral Foods. It trades about 0.02 of its total potential returns per unit of risk. Astral Foods is currently generating about 0.1 per unit of volatility. If you would invest 1,741,400 in Astral Foods on August 28, 2024 and sell it today you would earn a total of 129,500 from holding Astral Foods or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Investments vs. Astral Foods
Performance |
| Timeline |
| Astoria Investments |
| Astral Foods |
Astoria Investments and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Investments and Astral Foods
The main advantage of trading using opposite Astoria Investments and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Investments position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Astoria Investments vs. Trematon Capital Investments | Astoria Investments vs. Frontier Transport Holdings | Astoria Investments vs. Kap Industrial Holdings | Astoria Investments vs. Afine Investments |
| Astral Foods vs. Quantum Foods Holdings | Astral Foods vs. RCL Foods | Astral Foods vs. Trellidor Holdings | Astral Foods vs. Prosus 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |