Correlation Between BTU Metals and Astral Foods
Can any of the company-specific risk be diversified away by investing in both BTU Metals 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 BTU Metals and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTU Metals Corp and Astral Foods Limited, you can compare the effects of market volatilities on BTU Metals 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 BTU Metals with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTU Metals and Astral Foods.
Diversification Opportunities for BTU Metals and Astral Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTU and Astral is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTU Metals Corp 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 BTU Metals 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 BTU Metals Corp 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 BTU Metals i.e., BTU Metals and Astral Foods go up and down completely randomly.
Pair Corralation between BTU Metals and Astral Foods
If you would invest 710.00 in Astral Foods Limited on November 2, 2024 and sell it today you would earn a total of 29.00 from holding Astral Foods Limited or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
BTU Metals Corp vs. Astral Foods Limited
Performance |
| Timeline |
| BTU Metals Corp |
| Astral Foods Limited |
BTU Metals and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTU Metals and Astral Foods
The main advantage of trading using opposite BTU Metals and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTU Metals 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.| BTU Metals vs. Lifeway Foods | BTU Metals vs. Robix Environmental Technologies | BTU Metals vs. NH Foods Ltd | BTU Metals vs. Summit Environmental |
| Astral Foods vs. Austevoll Seafood ASA | Astral Foods vs. Golden Agri Resources | Astral Foods vs. SalMar ASA | Astral Foods vs. Wilmar International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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