Correlation Between Astral Foods and Sartorius Aktiengesellscha

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

Diversification Opportunities for Astral Foods and Sartorius Aktiengesellscha

0.3

Correlation Coefficient

Astral Foods  Sartorius Aktiengesellscha

Weak diversification

The 3 months correlation between Astral and Sartorius is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods Limited and Sartorius Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Aktiengesellscha 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 Sartorius Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Aktiengesellscha has no effect on the direction of Astral Foods i.e., Astral Foods and Sartorius Aktiengesellscha go up and down completely randomly.

Pair Corralation between Astral Foods and Sartorius Aktiengesellscha

Assuming the 90 days trading horizon Astral Foods Limited is expected to generate 7.62 times more return on investment than Sartorius Aktiengesellscha. However, Astral Foods is 7.62 times more volatile than Sartorius Aktiengesellschaft. It trades about 0.13 of its potential returns per unit of risk. Sartorius Aktiengesellschaft is currently generating about 0.02 per unit of risk. If you would invest  360.00  in Astral Foods Limited on October 26, 2024 and sell it today you would earn a total of  515.00  from holding Astral Foods Limited or generate 143.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Astral Foods Limited  vs.  Sartorius Aktiengesellschaft

Astral Foods Limited

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Astral Foods unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sartorius Aktiengesellscha

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Aktiengesellschaft are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sartorius Aktiengesellscha is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Astral Foods and Sartorius Aktiengesellscha

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

The idea behind Astral Foods Limited and Sartorius Aktiengesellschaft 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.