Correlation Between Astral Foods and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Boxer Retail 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 Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods and Boxer Retail, you can compare the effects of market volatilities on Astral Foods and Boxer Retail 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 Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Boxer Retail.
Diversification Opportunities for Astral Foods and Boxer Retail
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astral and Boxer is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail 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 Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Astral Foods i.e., Astral Foods and Boxer Retail go up and down completely randomly.
Pair Corralation between Astral Foods and Boxer Retail
Assuming the 90 days trading horizon Astral Foods is expected to under-perform the Boxer Retail. But the stock apears to be less risky and, when comparing its historical volatility, Astral Foods is 1.16 times less risky than Boxer Retail. The stock trades about -0.22 of its potential returns per unit of risk. The Boxer Retail is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 643,300 in Boxer Retail on October 25, 2024 and sell it today you would earn a total of 28,700 from holding Boxer Retail or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods vs. Boxer Retail
Performance |
| Timeline |
| Astral Foods |
| Boxer Retail |
Astral Foods and Boxer Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Boxer Retail
The main advantage of trading using opposite Astral Foods and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.| Astral Foods vs. City Lodge Hotels | Astral Foods vs. Safari Investments RSA | Astral Foods vs. HomeChoice Investments | Astral Foods vs. Nedbank Group |
| Boxer Retail vs. Deneb Investments | Boxer Retail vs. Hosken Consolidated Investments | Boxer Retail vs. Advtech | Boxer Retail vs. CA Sales Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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