Correlation Between SHBASS and Astral Foods

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

By analyzing existing cross correlation between SHBASS 5285215 10 JUN 25 and Astral Foods Limited, you can compare the effects of market volatilities on SHBASS 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 SHBASS with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHBASS and Astral Foods.

Diversification Opportunities for SHBASS and Astral Foods

0.0

Correlation Coefficient

SHBASS  Astral Foods

Pay attention - limited upside

The 3 months correlation between SHBASS and Astral is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SHBASS 5285215 10 JUN 25 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 SHBASS 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 SHBASS 5285215 10 JUN 25 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 SHBASS i.e., SHBASS and Astral Foods go up and down completely randomly.

Pair Corralation between SHBASS and Astral Foods

Assuming the 90 days trading horizon SHBASS 5285215 10 JUN 25 is expected to generate 0.35 times more return on investment than Astral Foods. However, SHBASS 5285215 10 JUN 25 is 2.84 times less risky than Astral Foods. It trades about 0.01 of its potential returns per unit of risk. Astral Foods Limited is currently generating about -0.06 per unit of risk. If you would invest  9,991  in SHBASS 5285215 10 JUN 25 on October 10, 2024 and sell it today you would earn a total of  37.00  from holding SHBASS 5285215 10 JUN 25 or generate 0.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	12.93%
Values	Daily Returns

SHBASS 5285215 10 JUN 25  vs.  Astral Foods Limited

SHBASS 5285215 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SHBASS 5285215 10 JUN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SHBASS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Astral Foods Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astral Foods Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Astral Foods is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SHBASS and Astral Foods

The main advantage of trading using opposite SHBASS and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHBASS 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.

The idea behind SHBASS 5285215 10 JUN 25 and Astral Foods Limited 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.