Correlation Between Astral and JSW Holdings

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

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

Diversification Opportunities for Astral and JSW Holdings

-0.59

Correlation Coefficient

Astral  JSW Holdings

Excellent diversification

The 3 months correlation between Astral and JSW is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Astral Limited and JSW Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSW Holdings Limited and Astral 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 Limited are associated (or correlated) with JSW Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSW Holdings Limited has no effect on the direction of Astral i.e., Astral and JSW Holdings go up and down completely randomly.

Pair Corralation between Astral and JSW Holdings

Assuming the 90 days trading horizon Astral Limited is expected to generate 0.81 times more return on investment than JSW Holdings. However, Astral Limited is 1.24 times less risky than JSW Holdings. It trades about 0.11 of its potential returns per unit of risk. JSW Holdings Limited is currently generating about -0.11 per unit of risk. If you would invest  133,800  in Astral Limited on April 20, 2025 and sell it today you would earn a total of  16,890  from holding Astral Limited or generate 12.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Astral Limited  vs.  JSW Holdings Limited

Astral Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Astral may actually be approaching a critical reversion point that can send shares even higher in August 2025.

JSW Holdings Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days JSW Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Astral and JSW Holdings

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

The idea behind Astral Limited and JSW Holdings 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..