Correlation Between Astral Foods and EnX
Can any of the company-specific risk be diversified away by investing in both Astral Foods and EnX 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 EnX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods and enX Group, you can compare the effects of market volatilities on Astral Foods and EnX 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 EnX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and EnX.
Diversification Opportunities for Astral Foods and EnX
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astral and EnX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and enX Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enX Group 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 EnX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enX Group has no effect on the direction of Astral Foods i.e., Astral Foods and EnX go up and down completely randomly.
Pair Corralation between Astral Foods and EnX
Assuming the 90 days trading horizon Astral Foods is expected to generate 0.63 times more return on investment than EnX. However, Astral Foods is 1.59 times less risky than EnX. It trades about 0.36 of its potential returns per unit of risk. enX Group is currently generating about 0.09 per unit of risk. If you would invest 1,697,700 in Astral Foods on September 12, 2024 and sell it today you would earn a total of 222,300 from holding Astral Foods or generate 13.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astral Foods vs. enX Group
Performance |
| Timeline |
| Astral Foods |
| enX Group |
Astral Foods and EnX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and EnX
The main advantage of trading using opposite Astral Foods and EnX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, EnX 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 EnX will offset losses from the drop in EnX's long position.| Astral Foods vs. MC Mining | Astral Foods vs. Trematon Capital Investments | Astral Foods vs. AfroCentric Investment Corp | Astral Foods vs. E Media 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |