Correlation Between Astral Foods and Sebata Holdings
Can any of the company-specific risk be diversified away by investing in both Astral Foods and Sebata Holdings 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 Sebata Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astral Foods and Sebata Holdings, you can compare the effects of market volatilities on Astral Foods and Sebata Holdings 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 Sebata Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Sebata Holdings.
Diversification Opportunities for Astral Foods and Sebata Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Astral and Sebata is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and Sebata Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sebata Holdings 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 Sebata Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sebata Holdings has no effect on the direction of Astral Foods i.e., Astral Foods and Sebata Holdings go up and down completely randomly.
Pair Corralation between Astral Foods and Sebata Holdings
Assuming the 90 days trading horizon Astral Foods is expected to generate 18.09 times more return on investment than Sebata Holdings. However, Astral Foods is 18.09 times more volatile than Sebata Holdings. It trades about 0.1 of its potential returns per unit of risk. Sebata Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,439,200 in Astral Foods on September 12, 2024 and sell it today you would earn a total of 480,800 from holding Astral Foods or generate 33.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Astral Foods vs. Sebata Holdings
Performance |
| Timeline |
| Astral Foods |
| Sebata Holdings |
Astral Foods and Sebata Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astral Foods and Sebata Holdings
The main advantage of trading using opposite Astral Foods and Sebata Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, Sebata Holdings 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 Sebata Holdings will offset losses from the drop in Sebata Holdings' long position.| Astral Foods vs. Standard Bank Group | Astral Foods vs. African Media Entertainment | Astral Foods vs. Copper 360 | Astral Foods vs. CA Sales Holdings |
| Sebata Holdings vs. Sasol Ltd Bee | Sebata Holdings vs. Centaur Bci Balanced | Sebata Holdings vs. Sabvest Capital | Sebata Holdings vs. Growthpoint Properties |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets |