Correlation Between Boston Beer and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and Astral Foods Limited, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Astral Foods.
Diversification Opportunities for Boston Beer and Astral Foods
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and Astral is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer 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 Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and Astral Foods go up and down completely randomly.
Pair Corralation between Boston Beer and Astral Foods
Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the Astral Foods. But the stock apears to be less risky and, when comparing its historical volatility, The Boston Beer is 4.35 times less risky than Astral Foods. The stock trades about 0.0 of its potential returns per unit of risk. The Astral Foods Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 945.00 in Astral Foods Limited on August 29, 2024 and sell it today you would lose (5.00) from holding Astral Foods Limited or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boston Beer vs. Astral Foods Limited
Performance |
| Timeline |
| Boston Beer |
| Astral Foods Limited |
Boston Beer and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and Astral Foods
The main advantage of trading using opposite Boston Beer and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Haverty Furniture Companies | Boston Beer vs. AUST AGRICULTURAL | Boston Beer vs. North American Construction | Boston Beer vs. Daito Trust Construction |
| Astral Foods vs. Tyson Foods | Astral Foods vs. SalMar ASA | Astral Foods vs. Superior Plus Corp | Astral Foods vs. SIVERS SEMICONDUCTORS AB |
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.
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