Correlation Between Axway Software and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Axway Software and Beowulf Mining 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 Beowulf Mining 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 Beowulf Mining, you can compare the effects of market volatilities on Axway Software and Beowulf Mining 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 Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Beowulf Mining.
Diversification Opportunities for Axway Software and Beowulf Mining
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axway and Beowulf is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Axway Software i.e., Axway Software and Beowulf Mining go up and down completely randomly.
Pair Corralation between Axway Software and Beowulf Mining
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.1 times more return on investment than Beowulf Mining. However, Axway Software SA is 9.92 times less risky than Beowulf Mining. It trades about -0.15 of its potential returns per unit of risk. Beowulf Mining is currently generating about -0.16 per unit of risk. If you would invest 2,750 in Axway Software SA on September 24, 2024 and sell it today you would lose (60.00) from holding Axway Software SA or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Beowulf Mining
Performance |
| Timeline |
| Axway Software SA |
| Beowulf Mining |
Axway Software and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Beowulf Mining
The main advantage of trading using opposite Axway Software and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining'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 |
| Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Ferrexpo PLC | Beowulf Mining vs. Atalaya Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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