Correlation Between Axway Software and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Axway Software and Oxford Technology 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 Oxford Technology 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 Oxford Technology 2, you can compare the effects of market volatilities on Axway Software and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Oxford Technology.
Diversification Opportunities for Axway Software and Oxford Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axway and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Axway Software i.e., Axway Software and Oxford Technology go up and down completely randomly.
Pair Corralation between Axway Software and Oxford Technology
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.69 times more return on investment than Oxford Technology. However, Axway Software SA is 1.46 times less risky than Oxford Technology. It trades about 0.13 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.18 per unit of risk. If you would invest 2,200 in Axway Software SA on October 25, 2024 and sell it today you would earn a total of 490.00 from holding Axway Software SA or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Oxford Technology 2
Performance |
| Timeline |
| Axway Software SA |
| Oxford Technology |
Axway Software and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Oxford Technology
The main advantage of trading using opposite Axway Software and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Axway Software vs. Toyota Motor Corp | Axway Software vs. SoftBank Group Corp | Axway Software vs. OTP Bank Nyrt | Axway Software vs. ONEOK Inc |
| Oxford Technology vs. Vitec Software Group | Oxford Technology vs. PureTech Health plc | Oxford Technology vs. Abingdon Health Plc | Oxford Technology vs. Planet Fitness Cl |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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