Correlation Between Ichor Coal and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Ichor Coal 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 Ichor Coal and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichor Coal NV and Astral Foods Limited, you can compare the effects of market volatilities on Ichor Coal 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 Ichor Coal with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichor Coal and Astral Foods.
Diversification Opportunities for Ichor Coal and Astral Foods
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ichor and Astral is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ichor Coal NV 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 Ichor Coal 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 Ichor Coal NV 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 Ichor Coal i.e., Ichor Coal and Astral Foods go up and down completely randomly.
Pair Corralation between Ichor Coal and Astral Foods
Assuming the 90 days trading horizon Ichor Coal NV is expected to under-perform the Astral Foods. In addition to that, Ichor Coal is 1.14 times more volatile than Astral Foods Limited. It trades about -0.16 of its total potential returns per unit of risk. Astral Foods Limited is currently generating about 0.04 per unit of volatility. If you would invest 780.00 in Astral Foods Limited on September 4, 2024 and sell it today you would earn a total of 160.00 from holding Astral Foods Limited or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ichor Coal NV vs. Astral Foods Limited
Performance |
| Timeline |
| Ichor Coal NV |
| Astral Foods Limited |
Ichor Coal and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichor Coal and Astral Foods
The main advantage of trading using opposite Ichor Coal and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichor Coal 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.| Ichor Coal vs. INTER CARS SA | Ichor Coal vs. CarsalesCom | Ichor Coal vs. MagnaChip Semiconductor Corp | Ichor Coal vs. AECOM TECHNOLOGY |
| Astral Foods vs. Archer Daniels Midland | Astral Foods vs. Tyson Foods | Astral Foods vs. Wilmar International Limited | Astral Foods vs. SalMar 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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