Correlation Between Axiomtek and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Axiomtek and Chinese Maritime 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 Axiomtek and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axiomtek Co and Chinese Maritime Transport, you can compare the effects of market volatilities on Axiomtek and Chinese Maritime 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 Axiomtek with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiomtek and Chinese Maritime.
Diversification Opportunities for Axiomtek and Chinese Maritime
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Axiomtek and Chinese is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Axiomtek Co and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra and Axiomtek 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 Axiomtek Co are associated (or correlated) with Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of Axiomtek i.e., Axiomtek and Chinese Maritime go up and down completely randomly.
Pair Corralation between Axiomtek and Chinese Maritime
Assuming the 90 days trading horizon Axiomtek Co is expected to generate 1.02 times more return on investment than Chinese Maritime. However, Axiomtek is 1.02 times more volatile than Chinese Maritime Transport. It trades about 0.06 of its potential returns per unit of risk. Chinese Maritime Transport is currently generating about 0.01 per unit of risk. If you would invest 8,243 in Axiomtek Co on September 14, 2024 and sell it today you would earn a total of 2,657 from holding Axiomtek Co or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Axiomtek Co vs. Chinese Maritime Transport
Performance |
| Timeline |
| Axiomtek |
| Chinese Maritime Tra |
Axiomtek and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axiomtek and Chinese Maritime
The main advantage of trading using opposite Axiomtek and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axiomtek position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| Axiomtek vs. Chinese Maritime Transport | Axiomtek vs. Galaxy Software Services | Axiomtek vs. Shan Loong Transportation Co | Axiomtek vs. Sporton International |
| 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 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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