Correlation Between Air Lease and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Air Lease and Astral Foods 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 Air Lease and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Astral Foods Limited, you can compare the effects of market volatilities on Air Lease and Astral Foods 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 Air Lease with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Astral Foods.
Diversification Opportunities for Air Lease and Astral Foods
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Air and Astral is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited and Air Lease 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 Air Lease are associated (or correlated) with Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Air Lease i.e., Air Lease and Astral Foods go up and down completely randomly.
Pair Corralation between Air Lease and Astral Foods
Assuming the 90 days trading horizon Air Lease is expected to generate 1.28 times less return on investment than Astral Foods. In addition to that, Air Lease is 1.04 times more volatile than Astral Foods Limited. It trades about 0.06 of its total potential returns per unit of risk. Astral Foods Limited is currently generating about 0.08 per unit of volatility. If you would invest 720.00 in Astral Foods Limited on September 1, 2024 and sell it today you would earn a total of 230.00 from holding Astral Foods Limited or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Astral Foods Limited
Performance |
| Timeline |
| Air Lease |
| Astral Foods Limited |
Air Lease and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Astral Foods
The main advantage of trading using opposite Air Lease and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Air Lease vs. Caseys General Stores | Air Lease vs. Ping An Insurance | Air Lease vs. Selective Insurance Group | Air Lease vs. The Hanover Insurance |
| Astral Foods vs. EAT WELL INVESTMENT | Astral Foods vs. Apollo Investment Corp | Astral Foods vs. CHINA OIL AND | Astral Foods vs. New Residential Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges |