Correlation Between CMDKF and Astralis
Can any of the company-specific risk be diversified away by investing in both CMDKF and Astralis 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 CMDKF and Astralis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMDKF and Astralis AS, you can compare the effects of market volatilities on CMDKF and Astralis 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 CMDKF with a short position of Astralis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMDKF and Astralis.
Diversification Opportunities for CMDKF and Astralis
No risk reduction
The 3 months correlation between CMDKF and Astralis is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding CMDKF and Astralis AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astralis AS and CMDKF 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 CMDKF are associated (or correlated) with Astralis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astralis AS has no effect on the direction of CMDKF i.e., CMDKF and Astralis go up and down completely randomly.
Pair Corralation between CMDKF and Astralis
If you would invest 24.00 in Astralis AS on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Astralis AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
CMDKF vs. Astralis AS
Performance |
| Timeline |
| CMDKF |
| Astralis AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CMDKF and Astralis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMDKF and Astralis
The main advantage of trading using opposite CMDKF and Astralis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMDKF position performs unexpectedly, Astralis 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 Astralis will offset losses from the drop in Astralis' long position.The idea behind CMDKF and Astralis AS 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.| Astralis vs. New Wave Holdings | Astralis vs. Guild Esports Plc | Astralis vs. Network Media Group | Astralis 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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