Correlation Between EAST SIDE and Astral Foods
Can any of the company-specific risk be diversified away by investing in both EAST SIDE and Astral Foods 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 EAST SIDE and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and Astral Foods Limited, you can compare the effects of market volatilities on EAST SIDE and Astral Foods 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 EAST SIDE with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and Astral Foods.
Diversification Opportunities for EAST SIDE and Astral Foods
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EAST and Astral is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited and EAST SIDE 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 EAST SIDE GAMES are associated (or correlated) with Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of EAST SIDE i.e., EAST SIDE and Astral Foods go up and down completely randomly.
Pair Corralation between EAST SIDE and Astral Foods
Assuming the 90 days horizon EAST SIDE GAMES is expected to generate 2.4 times more return on investment than Astral Foods. However, EAST SIDE is 2.4 times more volatile than Astral Foods Limited. It trades about 0.04 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.07 per unit of risk. If you would invest 29.00 in EAST SIDE GAMES on September 20, 2024 and sell it today you would earn a total of 5.00 from holding EAST SIDE GAMES or generate 17.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
EAST SIDE GAMES vs. Astral Foods Limited
Performance |
Timeline |
EAST SIDE GAMES |
Astral Foods Limited |
EAST SIDE and Astral Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EAST SIDE and Astral Foods
The main advantage of trading using opposite EAST SIDE and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.EAST SIDE vs. NEXON Co | EAST SIDE vs. Take Two Interactive Software | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. SIVERS SEMICONDUCTORS AB |
Astral Foods vs. CDL INVESTMENT | Astral Foods vs. EAST SIDE GAMES | Astral Foods vs. Boyd Gaming | Astral Foods vs. HK Electric Investments |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |