Correlation Between Retail Estates and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and Astral Foods Limited, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Astral Foods.
Diversification Opportunities for Retail Estates and Astral Foods
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Retail and Astral is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates 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 Retail Estates 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 Retail Estates 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 Retail Estates i.e., Retail Estates and Astral Foods go up and down completely randomly.
Pair Corralation between Retail Estates and Astral Foods
Assuming the 90 days horizon Retail Estates NV is expected to under-perform the Astral Foods. But the stock apears to be less risky and, when comparing its historical volatility, Retail Estates NV is 1.59 times less risky than Astral Foods. The stock trades about -0.26 of its potential returns per unit of risk. The Astral Foods Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Astral Foods Limited on August 28, 2024 and sell it today you would lose (5.00) from holding Astral Foods Limited or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. Astral Foods Limited
Performance |
| Timeline |
| Retail Estates NV |
| Astral Foods Limited |
Retail Estates and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Astral Foods
The main advantage of trading using opposite Retail Estates and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. GAMING FAC SA | Retail Estates vs. Media and Games | Retail Estates vs. EAST SIDE GAMES | Retail Estates vs. CI GAMES SA |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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