Correlation Between Axway Software and Edita Food
Can any of the company-specific risk be diversified away by investing in both Axway Software and Edita Food 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 Edita Food 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 Edita Food Industries, you can compare the effects of market volatilities on Axway Software and Edita Food 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 Edita Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Edita Food.
Diversification Opportunities for Axway Software and Edita Food
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axway and Edita is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Edita Food Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edita Food Industries 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 Edita Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edita Food Industries has no effect on the direction of Axway Software i.e., Axway Software and Edita Food go up and down completely randomly.
Pair Corralation between Axway Software and Edita Food
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.31 times more return on investment than Edita Food. However, Axway Software SA is 3.18 times less risky than Edita Food. It trades about 0.28 of its potential returns per unit of risk. Edita Food Industries is currently generating about -0.14 per unit of risk. If you would invest 2,380 in Axway Software SA on August 31, 2024 and sell it today you would earn a total of 390.00 from holding Axway Software SA or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Edita Food Industries
Performance |
| Timeline |
| Axway Software SA |
| Edita Food Industries |
Axway Software and Edita Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Edita Food
The main advantage of trading using opposite Axway Software and Edita Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Edita Food 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 Edita Food will offset losses from the drop in Edita Food's long position.| Axway Software vs. Polar Capital Technology | Axway Software vs. Sabien Technology Group | Axway Software vs. Auction Technology Group | Axway Software vs. Check Point Software |
| Edita Food vs. Live Nation Entertainment | Edita Food vs. mobilezone holding AG | Edita Food vs. Zinc Media Group | Edita Food vs. Grand Vision Media |
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
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |