Correlation Between Geely Automobile and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Geely Automobile 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 Geely Automobile and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and Astral Foods Limited, you can compare the effects of market volatilities on Geely Automobile 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 Geely Automobile with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Astral Foods.
Diversification Opportunities for Geely Automobile and Astral Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Geely and Astral is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings 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 Geely Automobile 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 Geely Automobile Holdings 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 Geely Automobile i.e., Geely Automobile and Astral Foods go up and down completely randomly.
Pair Corralation between Geely Automobile and Astral Foods
Assuming the 90 days horizon Geely Automobile is expected to generate 2.01 times less return on investment than Astral Foods. But when comparing it to its historical volatility, Geely Automobile Holdings is 2.42 times less risky than Astral Foods. It trades about 0.06 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 353.00 in Astral Foods Limited on October 29, 2024 and sell it today you would earn a total of 512.00 from holding Astral Foods Limited or generate 145.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Astral Foods Limited
Performance |
| Timeline |
| Geely Automobile Holdings |
| Astral Foods Limited |
Geely Automobile and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Astral Foods
The main advantage of trading using opposite Geely Automobile and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile 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.| Geely Automobile vs. Cars Inc | Geely Automobile vs. DELTA AIR LINES | Geely Automobile vs. CHINA EDUCATION GROUP | Geely Automobile vs. EEDUCATION ALBERT AB |
| Astral Foods vs. Archer Daniels Midland | Astral Foods vs. Tyson Foods | Astral Foods vs. MOWI ASA SPADR | Astral Foods vs. Mowi ASA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance |