Correlation Between Network Media and Astralis
Can any of the company-specific risk be diversified away by investing in both Network Media 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 Network Media and Astralis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Network Media Group and Astralis AS, you can compare the effects of market volatilities on Network Media 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 Network Media with a short position of Astralis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network Media and Astralis.
Diversification Opportunities for Network Media and Astralis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Network and Astralis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Network Media Group and Astralis AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astralis AS and Network Media 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 Network Media Group 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 Network Media i.e., Network Media and Astralis go up and down completely randomly.
Pair Corralation between Network Media and Astralis
Assuming the 90 days horizon Network Media Group is expected to generate 2.48 times more return on investment than Astralis. However, Network Media is 2.48 times more volatile than Astralis AS. It trades about 0.0 of its potential returns per unit of risk. Astralis AS is currently generating about -0.08 per unit of risk. If you would invest 24.00 in Network Media Group on August 26, 2024 and sell it today you would lose (17.70) from holding Network Media Group or give up 73.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
Network Media Group vs. Astralis AS
Performance |
| Timeline |
| Network Media Group |
| Astralis AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Network Media and Astralis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network Media and Astralis
The main advantage of trading using opposite Network Media and Astralis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network Media 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.| Network Media vs. New Wave Holdings | Network Media vs. ZoomerMedia Limited | Network Media vs. OverActive Media Corp | Network Media vs. Celtic plc |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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