Correlation Between Global Ship and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Global Ship and AXWAY SOFTWARE 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 Global Ship and AXWAY SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and AXWAY SOFTWARE EO, you can compare the effects of market volatilities on Global Ship and AXWAY SOFTWARE 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 Global Ship with a short position of AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and AXWAY SOFTWARE.
Diversification Opportunities for Global Ship and AXWAY SOFTWARE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and AXWAY is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO and Global Ship 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 Global Ship Lease are associated (or correlated) with AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of Global Ship i.e., Global Ship and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between Global Ship and AXWAY SOFTWARE
Assuming the 90 days horizon Global Ship is expected to generate 1.52 times less return on investment than AXWAY SOFTWARE. But when comparing it to its historical volatility, Global Ship Lease is 1.1 times less risky than AXWAY SOFTWARE. It trades about 0.05 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,494 in AXWAY SOFTWARE EO on September 3, 2024 and sell it today you would earn a total of 1,206 from holding AXWAY SOFTWARE EO or generate 80.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| Global Ship Lease |
| AXWAY SOFTWARE EO |
Global Ship and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and AXWAY SOFTWARE
The main advantage of trading using opposite Global Ship and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| Global Ship vs. BW LPG Limited | Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings |
| AXWAY SOFTWARE vs. NH HOTEL GROUP | AXWAY SOFTWARE vs. Wyndham Hotels Resorts | AXWAY SOFTWARE vs. Wayside Technology Group | AXWAY SOFTWARE vs. Computer And Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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