Correlation Between Astral Foods and BEXIMCO PHARMAGDR

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

Diversification Opportunities for Astral Foods and BEXIMCO PHARMAGDR

0.54

Correlation Coefficient

Astral Foods  BEXIMCO PHARMAGDR

Very weak diversification

The 3 months correlation between Astral and BEXIMCO is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and BEXIMCO PHARMAGDR REGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEXIMCO PHARMAGDR REGS 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 BEXIMCO PHARMAGDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEXIMCO PHARMAGDR REGS has no effect on the direction of Astral Foods i.e., Astral Foods and BEXIMCO PHARMAGDR go up and down completely randomly.

Pair Corralation between Astral Foods and BEXIMCO PHARMAGDR

Assuming the 90 days trading horizon Astral Foods Limited is expected to under-perform the BEXIMCO PHARMAGDR. But the stock apears to be less risky and, when comparing its historical volatility, Astral Foods Limited is 1.33 times less risky than BEXIMCO PHARMAGDR. The stock trades about -0.19 of its potential returns per unit of risk. The BEXIMCO PHARMAGDR REGS is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  40.00  in BEXIMCO PHARMAGDR REGS on October 8, 2024 and sell it today you would earn a total of  3.00  from holding BEXIMCO PHARMAGDR REGS or generate 7.5% return on investment over 90 days.

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

Astral Foods Limited  vs.  BEXIMCO PHARMAGDR REGS

Astral Foods Limited

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Astral Foods is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BEXIMCO PHARMAGDR REGS

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BEXIMCO PHARMAGDR REGS are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BEXIMCO PHARMAGDR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astral Foods and BEXIMCO PHARMAGDR

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

The idea behind Astral Foods Limited and BEXIMCO PHARMAGDR REGS 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.