Correlation Between Bio Rad and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Bio Rad 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 Bio Rad and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Rad Laboratories and Astral Foods Limited, you can compare the effects of market volatilities on Bio Rad 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 Bio Rad with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Astral Foods.
Diversification Opportunities for Bio Rad and Astral Foods
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bio and Astral is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories 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 Bio Rad 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 Bio Rad Laboratories 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 Bio Rad i.e., Bio Rad and Astral Foods go up and down completely randomly.
Pair Corralation between Bio Rad and Astral Foods
Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 14.31 times more return on investment than Astral Foods. However, Bio Rad is 14.31 times more volatile than Astral Foods Limited. It trades about 0.16 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.13 per unit of risk. If you would invest 23,036 in Bio Rad Laboratories on May 27, 2025 and sell it today you would earn a total of 7,346 from holding Bio Rad Laboratories or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Rad Laboratories vs. Astral Foods Limited
Performance |
| Timeline |
| Bio Rad Laboratories |
| Astral Foods Limited |
Bio Rad and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Rad and Astral Foods
The main advantage of trading using opposite Bio Rad and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad 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.| Bio Rad vs. Bruker | Bio Rad vs. The Cooper Companies, | Bio Rad vs. Charles River Laboratories | Bio Rad vs. Masimo |
| Astral Foods vs. Astra Agro Lestari | Astral Foods vs. Austevoll Seafood ASA | Astral Foods vs. Golden Agri Resources | Astral Foods vs. SalMar ASA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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