Correlation Between Astral Foods and AECI
Can any of the company-specific risk be diversified away by investing in both Astral Foods and AECI 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 AECI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods and AECI, you can compare the effects of market volatilities on Astral Foods and AECI 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 AECI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and AECI.
Diversification Opportunities for Astral Foods and AECI
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astral and AECI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and AECI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECI 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 are associated (or correlated) with AECI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECI has no effect on the direction of Astral Foods i.e., Astral Foods and AECI go up and down completely randomly.
Pair Corralation between Astral Foods and AECI
Assuming the 90 days trading horizon Astral Foods is expected to generate 59.16 times more return on investment than AECI. However, Astral Foods is 59.16 times more volatile than AECI. It trades about 0.08 of its potential returns per unit of risk. AECI is currently generating about 0.01 per unit of risk. If you would invest 1,568,500 in Astral Foods on September 9, 2024 and sell it today you would earn a total of 306,700 from holding Astral Foods or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Astral Foods vs. AECI
Performance |
| Timeline |
| Astral Foods |
| AECI |
Astral Foods and AECI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and AECI
The main advantage of trading using opposite Astral Foods and AECI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, AECI 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 AECI will offset losses from the drop in AECI's long position.| Astral Foods vs. Prosus NV | Astral Foods vs. Compagnie Financire Richemont | Astral Foods vs. British American Tobacco | Astral Foods vs. Glencore PLC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |