Correlation Between Axway Software and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Axway Software and Duke Energy 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 Duke Energy 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 Duke Energy, you can compare the effects of market volatilities on Axway Software and Duke Energy 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 Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Duke Energy.
Diversification Opportunities for Axway Software and Duke Energy
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axway and Duke is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy 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 Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Axway Software i.e., Axway Software and Duke Energy go up and down completely randomly.
Pair Corralation between Axway Software and Duke Energy
Assuming the 90 days trading horizon Axway Software SA is expected to under-perform the Duke Energy. In addition to that, Axway Software is 1.28 times more volatile than Duke Energy. It trades about -0.05 of its total potential returns per unit of risk. Duke Energy is currently generating about 0.15 per unit of volatility. If you would invest 10,378 in Duke Energy on November 3, 2024 and sell it today you would earn a total of 396.00 from holding Duke Energy or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Duke Energy
Performance |
| Timeline |
| Axway Software SA |
| Duke Energy |
Axway Software and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Duke Energy
The main advantage of trading using opposite Axway Software and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Axway Software vs. Easy Software AG | Axway Software vs. Geely Automobile Holdings | Axway Software vs. Take Two Interactive Software | Axway Software vs. OPERA SOFTWARE |
| Duke Energy vs. HOCHSCHILD MINING | Duke Energy vs. Media and Games | Duke Energy vs. GAMING FAC SA | Duke Energy vs. National Retail Properties |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |