Correlation Between Robex Resources and New Wave

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

By analyzing existing cross correlation between Robex Resources and New Wave Holdings, you can compare the effects of market volatilities on Robex Resources and New Wave 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 Robex Resources with a short position of New Wave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and New Wave.

Diversification Opportunities for Robex Resources and New Wave

0.42

Correlation Coefficient

Robex Resources  New Wave

Very weak diversification

The 3 months correlation between Robex and New is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and New Wave Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Wave Holdings and Robex Resources 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 Robex Resources are associated (or correlated) with New Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Wave Holdings has no effect on the direction of Robex Resources i.e., Robex Resources and New Wave go up and down completely randomly.

Pair Corralation between Robex Resources and New Wave

Assuming the 90 days horizon Robex Resources is expected to generate 38.97 times less return on investment than New Wave. But when comparing it to its historical volatility, Robex Resources is 13.78 times less risky than New Wave. It trades about 0.07 of its potential returns per unit of risk. New Wave Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  3.45  in New Wave Holdings on May 3, 2025 and sell it today you would earn a total of  37.55  from holding New Wave Holdings or generate 1088.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Robex Resources  vs.  New Wave Holdings

Robex Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, Robex Resources may actually be approaching a critical reversion point that can send shares even higher in September 2025.

New Wave Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in New Wave Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, New Wave reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robex Resources and New Wave

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

The idea behind Robex Resources and New Wave Holdings 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.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.