Correlation Between Astral Foods and NETCLASS TECHNOLOGY

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

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

Diversification Opportunities for Astral Foods and NETCLASS TECHNOLOGY

-0.59

Correlation Coefficient

Astral Foods  NETCLASS TECHNOLOGY

Excellent diversification

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

Pair Corralation between Astral Foods and NETCLASS TECHNOLOGY

Assuming the 90 days horizon Astral Foods Limited is expected to generate 0.02 times more return on investment than NETCLASS TECHNOLOGY. However, Astral Foods Limited is 51.48 times less risky than NETCLASS TECHNOLOGY. It trades about 0.12 of its potential returns per unit of risk. NETCLASS TECHNOLOGY INC is currently generating about -0.23 per unit of risk. If you would invest  727.00  in Astral Foods Limited on May 19, 2025 and sell it today you would earn a total of  12.00  from holding Astral Foods Limited or generate 1.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.92%
Values	Daily Returns

Astral Foods Limited  vs.  NETCLASS TECHNOLOGY INC

Astral Foods Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. 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.

NETCLASS TECHNOLOGY INC

Risk-Adjusted Performance

Weakest

Over the last 90 days NETCLASS TECHNOLOGY INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Astral Foods and NETCLASS TECHNOLOGY

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

The idea behind Astral Foods Limited and NETCLASS TECHNOLOGY INC 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.