Correlation Between Astral Foods and ACCSYS TECHPLC

Can any of the company-specific risk be diversified away by investing in both Astral Foods and ACCSYS TECHPLC 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 Astral Foods and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astral Foods Limited and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on Astral Foods and ACCSYS TECHPLC 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 Astral Foods with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and ACCSYS TECHPLC.

Diversification Opportunities for Astral Foods and ACCSYS TECHPLC

-0.35

Correlation Coefficient

Astral Foods  ACCSYS TECHPLC

Very good diversification

The 3 months correlation between Astral and ACCSYS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and Astral Foods 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 Astral Foods Limited are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of Astral Foods i.e., Astral Foods and ACCSYS TECHPLC go up and down completely randomly.

Pair Corralation between Astral Foods and ACCSYS TECHPLC

Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 0.65 times more return on investment than ACCSYS TECHPLC. However, Astral Foods Limited is 1.54 times less risky than ACCSYS TECHPLC. It trades about 0.2 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about 0.04 per unit of risk. If you would invest  860.00  in Astral Foods Limited on September 5, 2024 and sell it today you would earn a total of  75.00  from holding Astral Foods Limited or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Astral Foods Limited  vs.  ACCSYS TECHPLC EO

Astral Foods Limited

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Astral Foods may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ACCSYS TECHPLC EO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACCSYS TECHPLC EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Astral Foods and ACCSYS TECHPLC

The main advantage of trading using opposite Astral Foods and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.

The idea behind Astral Foods Limited and ACCSYS TECHPLC EO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.