Correlation Between Axway Software and HCA Healthcare
Can any of the company-specific risk be diversified away by investing in both Axway Software and HCA Healthcare 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 Axway Software and HCA Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axway Software SA and HCA Healthcare, you can compare the effects of market volatilities on Axway Software and HCA Healthcare 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 Axway Software with a short position of HCA Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and HCA Healthcare.
Diversification Opportunities for Axway Software and HCA Healthcare
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axway and HCA is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and HCA Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare and Axway Software 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 Axway Software SA are associated (or correlated) with HCA Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare has no effect on the direction of Axway Software i.e., Axway Software and HCA Healthcare go up and down completely randomly.
Pair Corralation between Axway Software and HCA Healthcare
Assuming the 90 days trading horizon Axway Software SA is expected to generate 2.01 times more return on investment than HCA Healthcare. However, Axway Software is 2.01 times more volatile than HCA Healthcare. It trades about 0.05 of its potential returns per unit of risk. HCA Healthcare is currently generating about 0.0 per unit of risk. If you would invest 2,360 in Axway Software SA on September 1, 2024 and sell it today you would earn a total of 410.00 from holding Axway Software SA or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Axway Software SA vs. HCA Healthcare
Performance |
| Timeline |
| Axway Software SA |
| HCA Healthcare |
Axway Software and HCA Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and HCA Healthcare
The main advantage of trading using opposite Axway Software and HCA Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, HCA Healthcare 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 HCA Healthcare will offset losses from the drop in HCA Healthcare's long position.| Axway Software vs. Uniper SE | Axway Software vs. Mulberry Group PLC | Axway Software vs. London Security Plc | Axway Software vs. Triad Group PLC |
| HCA Healthcare vs. Uniper SE | HCA Healthcare vs. Mulberry Group PLC | HCA Healthcare vs. London Security Plc | HCA Healthcare vs. Triad Group PLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |