Correlation Between Komercni Banka and Axway Software
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and Axway Software 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 Komercni Banka and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and Axway Software SA, you can compare the effects of market volatilities on Komercni Banka and Axway Software 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 Komercni Banka with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and Axway Software.
Diversification Opportunities for Komercni Banka and Axway Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and Axway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and Komercni Banka 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 Komercni Banka are associated (or correlated) with Axway Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axway Software SA has no effect on the direction of Komercni Banka i.e., Komercni Banka and Axway Software go up and down completely randomly.
Pair Corralation between Komercni Banka and Axway Software
Assuming the 90 days trading horizon Komercni Banka is expected to generate 646.0 times less return on investment than Axway Software. But when comparing it to its historical volatility, Komercni Banka is 817.01 times less risky than Axway Software. It trades about 0.05 of its potential returns per unit of risk. Axway Software SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,210 in Axway Software SA on September 19, 2024 and sell it today you would earn a total of 550.00 from holding Axway Software SA or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Komercni Banka vs. Axway Software SA
Performance |
| Timeline |
| Komercni Banka |
| Axway Software SA |
Komercni Banka and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and Axway Software
The main advantage of trading using opposite Komercni Banka and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Axway Software 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 Axway Software will offset losses from the drop in Axway Software's long position.| Komercni Banka vs. Samsung Electronics Co | Komercni Banka vs. Samsung Electronics Co | Komercni Banka vs. Hyundai Motor | Komercni Banka vs. Reliance Industries Ltd |
| Axway Software vs. Komercni Banka | Axway Software vs. National Bank of | Axway Software vs. Erste Group Bank | Axway Software vs. Cairo Communication SpA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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