Correlation Between New Wave and Astralis
Can any of the company-specific risk be diversified away by investing in both New Wave 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 New Wave and Astralis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Wave Holdings and Astralis AS, you can compare the effects of market volatilities on New Wave 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 New Wave with a short position of Astralis. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Wave and Astralis.
Diversification Opportunities for New Wave and Astralis
Pay attention - limited upside
The 3 months correlation between New and Astralis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Wave Holdings and Astralis AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astralis AS and New Wave 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 New Wave Holdings 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 New Wave i.e., New Wave and Astralis go up and down completely randomly.
Pair Corralation between New Wave and Astralis
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 |
New Wave Holdings vs. Astralis AS
Performance |
| Timeline |
| New Wave Holdings |
| Astralis AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Wave and Astralis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Wave and Astralis
The main advantage of trading using opposite New Wave and Astralis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Wave 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.| New Wave vs. ZoomerMedia Limited | New Wave vs. OverActive Media Corp | New Wave vs. Network Media Group | New Wave 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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