Correlation Between Astral Foods and Eastern Platinum
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Eastern Platinum 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 Eastern Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods and Eastern Platinum Limited, you can compare the effects of market volatilities on Astral Foods and Eastern Platinum 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 Eastern Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Eastern Platinum.
Diversification Opportunities for Astral Foods and Eastern Platinum
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astral and Eastern is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and Eastern Platinum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Platinum 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 Eastern Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Platinum has no effect on the direction of Astral Foods i.e., Astral Foods and Eastern Platinum go up and down completely randomly.
Pair Corralation between Astral Foods and Eastern Platinum
Assuming the 90 days trading horizon Astral Foods is expected to generate 0.39 times more return on investment than Eastern Platinum. However, Astral Foods is 2.57 times less risky than Eastern Platinum. It trades about 0.12 of its potential returns per unit of risk. Eastern Platinum Limited is currently generating about -0.07 per unit of risk. If you would invest 1,727,500 in Astral Foods on September 2, 2024 and sell it today you would earn a total of 172,500 from holding Astral Foods or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Astral Foods vs. Eastern Platinum Limited
Performance |
| Timeline |
| Astral Foods |
| Eastern Platinum |
Astral Foods and Eastern Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Eastern Platinum
The main advantage of trading using opposite Astral Foods and Eastern Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Eastern Platinum 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 Eastern Platinum will offset losses from the drop in Eastern Platinum's long position.| Astral Foods vs. Prosus NV | Astral Foods vs. British American Tobacco | Astral Foods vs. Glencore PLC | Astral Foods vs. Anglo American PLC |
| Eastern Platinum vs. Kap Industrial Holdings | Eastern Platinum vs. Bytes Technology | Eastern Platinum vs. Harmony Gold Mining | Eastern Platinum vs. Astral Foods |
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 Positions Ratings module to 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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |