Correlation Between Peijia Medical and Axway Software
Can any of the company-specific risk be diversified away by investing in both Peijia Medical 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 Peijia Medical and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peijia Medical Limited and Axway Software SA, you can compare the effects of market volatilities on Peijia Medical 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 Peijia Medical with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and Axway Software.
Diversification Opportunities for Peijia Medical and Axway Software
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peijia and Axway is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and Peijia Medical 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 Peijia Medical Limited 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 SA has no effect on the direction of Peijia Medical i.e., Peijia Medical and Axway Software go up and down completely randomly.
Pair Corralation between Peijia Medical and Axway Software
Assuming the 90 days horizon Peijia Medical Limited is expected to under-perform the Axway Software. In addition to that, Peijia Medical is 2.35 times more volatile than Axway Software SA. It trades about -0.03 of its total potential returns per unit of risk. Axway Software SA is currently generating about 0.03 per unit of volatility. If you would invest 2,250 in Axway Software SA on November 7, 2024 and sell it today you would earn a total of 450.00 from holding Axway Software SA or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.2% |
| Values | Daily Returns |
Peijia Medical Limited vs. Axway Software SA
Performance |
| Timeline |
| Peijia Medical |
| Axway Software SA |
Peijia Medical and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and Axway Software
The main advantage of trading using opposite Peijia Medical and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical 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.| Peijia Medical vs. Abbott Laboratories | Peijia Medical vs. Abbott Laboratories | Peijia Medical vs. Medtronic PLC | Peijia Medical vs. Stryker |
| Axway Software vs. CarsalesCom | Axway Software vs. MPH Health Care | Axway Software vs. Brockhaus Capital Management | Axway Software vs. BOS BETTER ONLINE |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |