Correlation Between Sabra Health and ASTRA INTERNATIONAL

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

By analyzing existing cross correlation between Sabra Health Care and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on Sabra Health and ASTRA INTERNATIONAL 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 Sabra Health with a short position of ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and ASTRA INTERNATIONAL.

Diversification Opportunities for Sabra Health and ASTRA INTERNATIONAL

0.1

Correlation Coefficient

Sabra Health  ASTRA INTERNATIONAL

Average diversification

The 3 months correlation between Sabra and ASTRA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL and Sabra Health 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 Sabra Health Care are associated (or correlated) with ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of Sabra Health i.e., Sabra Health and ASTRA INTERNATIONAL go up and down completely randomly.

Pair Corralation between Sabra Health and ASTRA INTERNATIONAL

Assuming the 90 days horizon Sabra Health is expected to generate 6.23 times less return on investment than ASTRA INTERNATIONAL. But when comparing it to its historical volatility, Sabra Health Care is 1.8 times less risky than ASTRA INTERNATIONAL. It trades about 0.03 of its potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  22.00  in ASTRA INTERNATIONAL on April 24, 2025 and sell it today you would earn a total of  4.00  from holding ASTRA INTERNATIONAL or generate 18.18% return on investment over 90 days.

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

Sabra Health Care  vs.  ASTRA INTERNATIONAL

Sabra Health Care

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sabra Health Care are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sabra Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ASTRA INTERNATIONAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASTRA INTERNATIONAL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, ASTRA INTERNATIONAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sabra Health and ASTRA INTERNATIONAL

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

The idea behind Sabra Health Care and ASTRA INTERNATIONAL 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.