Correlation Between Axway Software and OLAM GROUP
Can any of the company-specific risk be diversified away by investing in both Axway Software and OLAM 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 Axway Software and OLAM GROUP 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 OLAM GROUP LTD, you can compare the effects of market volatilities on Axway Software and OLAM 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 Axway Software with a short position of OLAM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and OLAM GROUP.
Diversification Opportunities for Axway Software and OLAM GROUP
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axway and OLAM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and OLAM GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLAM GROUP LTD 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 OLAM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLAM GROUP LTD has no effect on the direction of Axway Software i.e., Axway Software and OLAM GROUP go up and down completely randomly.
Pair Corralation between Axway Software and OLAM GROUP
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.81 times more return on investment than OLAM GROUP. However, Axway Software SA is 1.24 times less risky than OLAM GROUP. It trades about -0.03 of its potential returns per unit of risk. OLAM GROUP LTD is currently generating about -0.18 per unit of risk. If you would invest 2,670 in Axway Software SA on October 25, 2024 and sell it today you would lose (20.00) from holding Axway Software SA or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. OLAM GROUP LTD
Performance |
| Timeline |
| Axway Software SA |
| OLAM GROUP LTD |
Axway Software and OLAM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and OLAM GROUP
The main advantage of trading using opposite Axway Software and OLAM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, OLAM 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 OLAM GROUP will offset losses from the drop in OLAM GROUP's long position.| Axway Software vs. The Hanover Insurance | Axway Software vs. Linedata Services SA | Axway Software vs. DATATEC LTD 2 | Axway Software vs. Northern Data AG |
| OLAM GROUP vs. Magic Software Enterprises | OLAM GROUP vs. Gol Intelligent Airlines | OLAM GROUP vs. Kingdee International Software | OLAM GROUP vs. AXWAY SOFTWARE EO |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |