Correlation Between Astral Foods and Brikor

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

By analyzing existing cross correlation between Astral Foods and Brikor, you can compare the effects of market volatilities on Astral Foods and Brikor 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 Brikor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astral Foods and Brikor.

Diversification Opportunities for Astral Foods and Brikor

-0.13

Correlation Coefficient

Astral Foods  Brikor

Good diversification

The 3 months correlation between Astral and Brikor is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Astral Foods and Brikor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brikor 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 are associated (or correlated) with Brikor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brikor has no effect on the direction of Astral Foods i.e., Astral Foods and Brikor go up and down completely randomly.

Pair Corralation between Astral Foods and Brikor

Assuming the 90 days trading horizon Astral Foods is expected to under-perform the Brikor. But the stock apears to be less risky and, when comparing its historical volatility, Astral Foods is 1.78 times less risky than Brikor. The stock trades about -0.18 of its potential returns per unit of risk. The Brikor is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,400  in Brikor on December 23, 2024 and sell it today you would earn a total of  0.00  from holding Brikor or generate 0.0% return on investment over 90 days.

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

Astral Foods  vs.  Brikor

Astral Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astral Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Brikor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brikor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Brikor is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Astral Foods and Brikor

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

The idea behind Astral Foods and Brikor 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.