Correlation Between Astral Foods and Keurig Dr

Can any of the company-specific risk be diversified away by investing in both Astral Foods and Keurig Dr 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 Keurig Dr 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 Keurig Dr Pepper, you can compare the effects of market volatilities on Astral Foods and Keurig Dr 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 Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Keurig Dr.

Diversification Opportunities for Astral Foods and Keurig Dr

-0.06

Correlation Coefficient

Astral Foods  Keurig Dr

Good diversification

The 3 months correlation between Astral and Keurig is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Astral Foods i.e., Astral Foods and Keurig Dr go up and down completely randomly.

Pair Corralation between Astral Foods and Keurig Dr

Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 12.39 times more return on investment than Keurig Dr. However, Astral Foods is 12.39 times more volatile than Keurig Dr Pepper. It trades about 0.12 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.07 per unit of risk. If you would invest  391.00  in Astral Foods Limited on December 4, 2024 and sell it today you would earn a total of  414.00  from holding Astral Foods Limited or generate 105.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Astral Foods Limited  vs.  Keurig Dr Pepper

Astral Foods Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Astral Foods unveiled solid returns over the last few months and may actually be approaching a breakup point.

Keurig Dr Pepper

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Keurig Dr Pepper are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Keurig Dr is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Astral Foods and Keurig Dr

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

The idea behind Astral Foods Limited and Keurig Dr Pepper 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.