Correlation Between Axfood AB and SoftBank Group
Can any of the company-specific risk be diversified away by investing in both Axfood AB and SoftBank Group 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 Axfood AB and SoftBank Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and SoftBank Group Corp, you can compare the effects of market volatilities on Axfood AB and SoftBank Group 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 Axfood AB with a short position of SoftBank Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and SoftBank Group.
Diversification Opportunities for Axfood AB and SoftBank Group
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axfood and SoftBank is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and SoftBank Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftBank Group Corp and Axfood AB 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 Axfood AB are associated (or correlated) with SoftBank Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftBank Group Corp has no effect on the direction of Axfood AB i.e., Axfood AB and SoftBank Group go up and down completely randomly.
Pair Corralation between Axfood AB and SoftBank Group
Assuming the 90 days trading horizon Axfood AB is expected to under-perform the SoftBank Group. But the stock apears to be less risky and, when comparing its historical volatility, Axfood AB is 2.09 times less risky than SoftBank Group. The stock trades about -0.08 of its potential returns per unit of risk. The SoftBank Group Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 894,600 in SoftBank Group Corp on September 5, 2024 and sell it today you would earn a total of 20,400 from holding SoftBank Group Corp or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
Axfood AB vs. SoftBank Group Corp
Performance |
| Timeline |
| Axfood AB |
| SoftBank Group Corp |
Axfood AB and SoftBank Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and SoftBank Group
The main advantage of trading using opposite Axfood AB and SoftBank Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB position performs unexpectedly, SoftBank Group 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 SoftBank Group will offset losses from the drop in SoftBank Group's long position.| Axfood AB vs. Samsung Electronics Co | Axfood AB vs. Samsung Electronics Co | Axfood AB vs. Hyundai Motor | Axfood AB vs. Toyota Motor Corp |
| SoftBank Group vs. Ion Beam Applications | SoftBank Group vs. Leroy Seafood Group | SoftBank Group vs. Axfood AB | SoftBank Group vs. Sligro Food Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |