Correlation Between Axway Software and PG E
Can any of the company-specific risk be diversified away by investing in both Axway Software and PG E 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 PG E 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 PG E P6, you can compare the effects of market volatilities on Axway Software and PG E 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 PG E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and PG E.
Diversification Opportunities for Axway Software and PG E
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axway and PCG6 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of Axway Software i.e., Axway Software and PG E go up and down completely randomly.
Pair Corralation between Axway Software and PG E
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.84 times more return on investment than PG E. However, Axway Software SA is 1.2 times less risky than PG E. It trades about 0.3 of its potential returns per unit of risk. PG E P6 is currently generating about 0.09 per unit of risk. If you would invest 2,230 in Axway Software SA on September 12, 2024 and sell it today you would earn a total of 480.00 from holding Axway Software SA or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. PG E P6
Performance |
| Timeline |
| Axway Software SA |
| PG E P6 |
Axway Software and PG E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and PG E
The main advantage of trading using opposite Axway Software and PG E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, PG E 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 PG E will offset losses from the drop in PG E's long position.| Axway Software vs. GUARDANT HEALTH CL | Axway Software vs. Natural Health Trends | Axway Software vs. Sabra Health Care | Axway Software vs. ATRYS HEALTH SA |
| PG E vs. Ribbon Communications | PG E vs. Tower One Wireless | PG E vs. HANOVER INSURANCE | PG E vs. Safety Insurance 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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