Correlation Between Astralis and Celtic Plc

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

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

Diversification Opportunities for Astralis and Celtic Plc

0.0

Correlation Coefficient

Astralis  Celtic Plc

Pay attention - limited upside

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

Pair Corralation between Astralis and Celtic Plc

Assuming the 90 days horizon Astralis AS is expected to under-perform the Celtic Plc. But the pink sheet apears to be less risky and, when comparing its historical volatility, Astralis AS is 1.31 times less risky than Celtic Plc. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Celtic plc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Celtic plc on August 31, 2024 and sell it today you would earn a total of  69.00  from holding Celtic plc or generate 53.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	28.51%
Values	Daily Returns

Astralis AS  vs.  Celtic plc

Astralis AS

Risk-Adjusted Performance

0 of 100

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.

Celtic plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celtic plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Astralis and Celtic Plc

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

The idea behind Astralis AS and Celtic plc 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 Stocks Directory module to find actively traded stocks across global markets.