Correlation Between AXMIN and NORTH MEDIA
Can any of the company-specific risk be diversified away by investing in both AXMIN and NORTH MEDIA 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 AXMIN and NORTH MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXMIN Inc and NORTH MEDIA, you can compare the effects of market volatilities on AXMIN and NORTH MEDIA 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 AXMIN with a short position of NORTH MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXMIN and NORTH MEDIA.
Diversification Opportunities for AXMIN and NORTH MEDIA
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between AXMIN and NORTH is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding AXMIN Inc and NORTH MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTH MEDIA and AXMIN 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 AXMIN Inc are associated (or correlated) with NORTH MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTH MEDIA has no effect on the direction of AXMIN i.e., AXMIN and NORTH MEDIA go up and down completely randomly.
Pair Corralation between AXMIN and NORTH MEDIA
Assuming the 90 days trading horizon AXMIN is expected to generate 2.59 times less return on investment than NORTH MEDIA. In addition to that, AXMIN is 1.4 times more volatile than NORTH MEDIA. It trades about 0.02 of its total potential returns per unit of risk. NORTH MEDIA is currently generating about 0.07 per unit of volatility. If you would invest 202.00 in NORTH MEDIA on August 29, 2024 and sell it today you would earn a total of 624.00 from holding NORTH MEDIA or generate 308.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXMIN Inc vs. NORTH MEDIA
Performance |
| Timeline |
| AXMIN Inc |
| NORTH MEDIA |
AXMIN and NORTH MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXMIN and NORTH MEDIA
The main advantage of trading using opposite AXMIN and NORTH MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXMIN position performs unexpectedly, NORTH MEDIA 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 NORTH MEDIA will offset losses from the drop in NORTH MEDIA's long position.| AXMIN vs. CapitaLand Investment Limited | AXMIN vs. REGAL ASIAN INVESTMENTS | AXMIN vs. ECHO INVESTMENT ZY | AXMIN vs. RETAIL FOOD GROUP |
| NORTH MEDIA vs. Apple Inc | NORTH MEDIA vs. Apple Inc | NORTH MEDIA vs. Microsoft | NORTH MEDIA vs. Microsoft |
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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