Correlation Between TFS FINANCIAL and Astral Foods
Can any of the company-specific risk be diversified away by investing in both TFS FINANCIAL 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 TFS FINANCIAL and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFS FINANCIAL and Astral Foods Limited, you can compare the effects of market volatilities on TFS FINANCIAL 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 TFS FINANCIAL with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFS FINANCIAL and Astral Foods.
Diversification Opportunities for TFS FINANCIAL and Astral Foods
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between TFS and Astral is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL i.e., TFS FINANCIAL and Astral Foods go up and down completely randomly.
Pair Corralation between TFS FINANCIAL and Astral Foods
Assuming the 90 days trading horizon TFS FINANCIAL is expected to generate 1.69 times less return on investment than Astral Foods. But when comparing it to its historical volatility, TFS FINANCIAL is 1.98 times less risky than Astral Foods. It trades about 0.03 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 835.00 in Astral Foods Limited on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Astral Foods Limited or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFS FINANCIAL vs. Astral Foods Limited
Performance |
| Timeline |
| TFS FINANCIAL |
| Astral Foods Limited |
TFS FINANCIAL and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFS FINANCIAL and Astral Foods
The main advantage of trading using opposite TFS FINANCIAL and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS FINANCIAL 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.| TFS FINANCIAL vs. Gladstone Investment | TFS FINANCIAL vs. Infrastrutture Wireless Italiane | TFS FINANCIAL vs. WillScot Mobile Mini | TFS FINANCIAL vs. HK Electric Investments |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |