Correlation Between Guild Esports and Astralis

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

By analyzing existing cross correlation between Guild Esports Plc and Astralis AS, you can compare the effects of market volatilities on Guild Esports 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 Guild Esports with a short position of Astralis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Esports and Astralis.

Diversification Opportunities for Guild Esports and Astralis

0.0

Correlation Coefficient

Guild Esports  Astralis

Pay attention - limited upside

The 3 months correlation between Guild and Astralis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and Astralis AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astralis AS and Guild Esports 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 Guild Esports Plc 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 Guild Esports i.e., Guild Esports and Astralis go up and down completely randomly.

Pair Corralation between Guild Esports and Astralis

If you would invest  0.74  in Guild Esports Plc on December 29, 2024 and sell it today you would lose (0.73) from holding Guild Esports Plc or give up 98.65% of portfolio value over 90 days.

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

Guild Esports Plc  vs.  Astralis AS

Guild Esports Plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Guild Esports Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Guild Esports reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Guild Esports and Astralis

The main advantage of trading using opposite Guild Esports and Astralis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Esports 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 Guild Esports Plc 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.