Correlation Between Chinese Maritime and Axiomtek
Can any of the company-specific risk be diversified away by investing in both Chinese Maritime and Axiomtek 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 Chinese Maritime and Axiomtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Maritime Transport and Axiomtek Co, you can compare the effects of market volatilities on Chinese Maritime and Axiomtek 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 Chinese Maritime with a short position of Axiomtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Maritime and Axiomtek.
Diversification Opportunities for Chinese Maritime and Axiomtek
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Axiomtek is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Maritime Transport and Axiomtek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axiomtek and Chinese Maritime 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 Chinese Maritime Transport are associated (or correlated) with Axiomtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axiomtek has no effect on the direction of Chinese Maritime i.e., Chinese Maritime and Axiomtek go up and down completely randomly.
Pair Corralation between Chinese Maritime and Axiomtek
Assuming the 90 days trading horizon Chinese Maritime is expected to generate 86.56 times less return on investment than Axiomtek. But when comparing it to its historical volatility, Chinese Maritime Transport is 22.69 times less risky than Axiomtek. It trades about 0.01 of its potential returns per unit of risk. Axiomtek Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,020 in Axiomtek Co on September 14, 2024 and sell it today you would earn a total of 5,880 from holding Axiomtek Co or generate 117.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Maritime Transport vs. Axiomtek Co
Performance |
| Timeline |
| Chinese Maritime Tra |
| Axiomtek |
Chinese Maritime and Axiomtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Maritime and Axiomtek
The main advantage of trading using opposite Chinese Maritime and Axiomtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Maritime position performs unexpectedly, Axiomtek 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 Axiomtek will offset losses from the drop in Axiomtek's long position.| Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
| Axiomtek vs. Chinese Maritime Transport | Axiomtek vs. Galaxy Software Services | Axiomtek vs. Shan Loong Transportation Co | Axiomtek vs. Sporton International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |