Correlation Between SalMar ASA and Astral Foods
Can any of the company-specific risk be diversified away by investing in both SalMar ASA 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 SalMar ASA and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and Astral Foods Limited, you can compare the effects of market volatilities on SalMar ASA 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 SalMar ASA with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and Astral Foods.
Diversification Opportunities for SalMar ASA and Astral Foods
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SalMar and Astral is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA 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 SalMar ASA 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 SalMar ASA 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 SalMar ASA i.e., SalMar ASA and Astral Foods go up and down completely randomly.
Pair Corralation between SalMar ASA and Astral Foods
Assuming the 90 days horizon SalMar ASA is expected to generate 1.07 times less return on investment than Astral Foods. But when comparing it to its historical volatility, SalMar ASA is 2.09 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Astral Foods Limited on August 27, 2024 and sell it today you would earn a total of 35.00 from holding Astral Foods Limited or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SalMar ASA vs. Astral Foods Limited
Performance |
| Timeline |
| SalMar ASA |
| Astral Foods Limited |
SalMar ASA and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SalMar ASA and Astral Foods
The main advantage of trading using opposite SalMar ASA and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA 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.| SalMar ASA vs. Mizuho Financial Group | SalMar ASA vs. Commonwealth Bank of | SalMar ASA vs. Webster Financial | SalMar ASA vs. OAKTRSPECLENDNEW |
| Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech | 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |