Correlation Between Astral Foods and DBS GROUP
Can any of the company-specific risk be diversified away by investing in both Astral Foods and DBS GROUP 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 DBS GROUP 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 DBS GROUP HLDGS, you can compare the effects of market volatilities on Astral Foods and DBS GROUP 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 DBS GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and DBS GROUP.
Diversification Opportunities for Astral Foods and DBS GROUP
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astral and DBS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and DBS GROUP HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBS GROUP HLDGS 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 DBS GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBS GROUP HLDGS has no effect on the direction of Astral Foods i.e., Astral Foods and DBS GROUP go up and down completely randomly.
Pair Corralation between Astral Foods and DBS GROUP
Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 1.48 times more return on investment than DBS GROUP. However, Astral Foods is 1.48 times more volatile than DBS GROUP HLDGS. It trades about 0.11 of its potential returns per unit of risk. DBS GROUP HLDGS is currently generating about 0.14 per unit of risk. If you would invest 850.00 in Astral Foods Limited on October 11, 2024 and sell it today you would earn a total of 60.00 from holding Astral Foods Limited or generate 7.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 97.44% |
Values | Daily Returns |
Astral Foods Limited vs. DBS GROUP HLDGS
Performance |
Timeline |
Astral Foods Limited |
DBS GROUP HLDGS |
Astral Foods and DBS GROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astral Foods and DBS GROUP
The main advantage of trading using opposite Astral Foods and DBS GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astral Foods position performs unexpectedly, DBS GROUP 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 DBS GROUP will offset losses from the drop in DBS GROUP's long position.Astral Foods vs. BORR DRILLING NEW | Astral Foods vs. Virtu Financial | Astral Foods vs. SOUTHWEST AIRLINES | Astral Foods vs. Synovus Financial Corp |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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