Correlation Between Axway Software and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Axway Software and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on Axway Software and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and GreenX Metals.
Diversification Opportunities for Axway Software and GreenX Metals
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axway and GreenX is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Axway Software i.e., Axway Software and GreenX Metals go up and down completely randomly.
Pair Corralation between Axway Software and GreenX Metals
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.54 times more return on investment than GreenX Metals. However, Axway Software SA is 1.84 times less risky than GreenX Metals. It trades about 0.14 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.22 per unit of risk. If you would invest 2,670 in Axway Software SA on August 28, 2024 and sell it today you would earn a total of 80.00 from holding Axway Software SA or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Axway Software SA vs. GreenX Metals
Performance |
| Timeline |
| Axway Software SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| GreenX Metals |
Axway Software and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and GreenX Metals
The main advantage of trading using opposite Axway Software and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Axway Software vs. Samsung Electronics Co | Axway Software vs. Samsung Electronics Co | Axway Software vs. Hyundai Motor | Axway Software vs. Toyota Motor Corp |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Atalaya Mining | GreenX Metals vs. Amaroq Minerals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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