Correlation Between Astralis and Network Media

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

By analyzing existing cross correlation between Astralis AS and Network Media Group, you can compare the effects of market volatilities on Astralis and Network Media 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 Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astralis and Network Media.

Diversification Opportunities for Astralis and Network Media

0.0

Correlation Coefficient

Astralis  Network Media

Pay attention - limited upside

The 3 months correlation between Astralis and Network is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astralis AS and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group 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 Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of Astralis i.e., Astralis and Network Media go up and down completely randomly.

Pair Corralation between Astralis and Network Media

If you would invest (100.00) in Astralis AS on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Astralis AS or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astralis AS  vs.  Network Media Group

Astralis AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astralis AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Astralis is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Network Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Network Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Network Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Astralis and Network Media

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

The idea behind Astralis AS and Network Media Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.