Correlation Between Axway Software and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both Axway Software and Anglo Eastern 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 Anglo Eastern 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 Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on Axway Software and Anglo Eastern 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 Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Anglo Eastern.
Diversification Opportunities for Axway Software and Anglo Eastern
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axway and Anglo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta 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 Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of Axway Software i.e., Axway Software and Anglo Eastern go up and down completely randomly.
Pair Corralation between Axway Software and Anglo Eastern
Assuming the 90 days trading horizon Axway Software SA is expected to generate 4.51 times more return on investment than Anglo Eastern. However, Axway Software is 4.51 times more volatile than Anglo Eastern Plantations PLC. It trades about 0.04 of its potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about 0.0 per unit of risk. If you would invest 2,170 in Axway Software SA on September 12, 2024 and sell it today you would earn a total of 570.00 from holding Axway Software SA or generate 26.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| Axway Software SA |
| Anglo Eastern Planta |
Axway Software and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Anglo Eastern
The main advantage of trading using opposite Axway Software and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| Axway Software vs. Evolution Gaming Group | Axway Software vs. McEwen Mining | Axway Software vs. Gaming Realms plc | Axway Software vs. Edita Food Industries |
| Anglo Eastern vs. McEwen Mining | Anglo Eastern vs. Vitec Software Group | Anglo Eastern vs. Litigation Capital Management | Anglo Eastern vs. Axway Software SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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