Correlation Between Scandinavian Tobacco and Axway Software
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and Axway Software 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 Scandinavian Tobacco and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Tobacco Group and Axway Software SA, you can compare the effects of market volatilities on Scandinavian Tobacco and Axway Software 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 Scandinavian Tobacco with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and Axway Software.
Diversification Opportunities for Scandinavian Tobacco and Axway Software
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and Axway is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with Axway Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axway Software SA has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and Axway Software go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and Axway Software
Assuming the 90 days trading horizon Scandinavian Tobacco Group is expected to under-perform the Axway Software. In addition to that, Scandinavian Tobacco is 3.28 times more volatile than Axway Software SA. It trades about -0.14 of its total potential returns per unit of risk. Axway Software SA is currently generating about -0.16 per unit of volatility. If you would invest 2,810 in Axway Software SA on September 13, 2024 and sell it today you would lose (60.00) from holding Axway Software SA or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. Axway Software SA
Performance |
| Timeline |
| Scandinavian Tobacco |
| Axway Software SA |
Scandinavian Tobacco and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and Axway Software
The main advantage of trading using opposite Scandinavian Tobacco and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, Axway Software 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 Axway Software will offset losses from the drop in Axway Software's long position.| Scandinavian Tobacco vs. Aurora Investment Trust | Scandinavian Tobacco vs. Orient Telecoms | Scandinavian Tobacco vs. Cairo Communication SpA | Scandinavian Tobacco vs. Blackstone Loan Financing |
| Axway Software vs. Molson Coors Beverage | Axway Software vs. Supermarket Income REIT | Axway Software vs. Addtech | Axway Software vs. Roper Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |