Correlation Between Astralis and New Wave
Can any of the company-specific risk be diversified away by investing in both Astralis and New Wave 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 Astralis and New Wave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astralis AS and New Wave Holdings, you can compare the effects of market volatilities on Astralis and New Wave 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 Astralis with a short position of New Wave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astralis and New Wave.
Diversification Opportunities for Astralis and New Wave
Pay attention - limited upside
The 3 months correlation between Astralis and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astralis AS and New Wave Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Wave Holdings and Astralis 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 Astralis AS are associated (or correlated) with New Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Wave Holdings has no effect on the direction of Astralis i.e., Astralis and New Wave go up and down completely randomly.
Pair Corralation between Astralis and New Wave
If you would invest 0.98 in New Wave Holdings on August 29, 2024 and sell it today you would earn a total of 0.23 from holding New Wave Holdings or generate 23.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Astralis AS vs. New Wave Holdings
Performance |
| Timeline |
| Astralis AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New Wave Holdings |
Astralis and New Wave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astralis and New Wave
The main advantage of trading using opposite Astralis and New Wave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astralis position performs unexpectedly, New Wave 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 New Wave will offset losses from the drop in New Wave's long position.| Astralis vs. New Wave Holdings | Astralis vs. Guild Esports Plc | Astralis vs. Network Media Group | Astralis vs. Celtic plc |
| New Wave vs. ZoomerMedia Limited | New Wave vs. OverActive Media Corp | New Wave vs. Network Media Group | New Wave vs. Celtic plc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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