Correlation Between AXMIN and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both AXMIN and Costco Wholesale 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 Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXMIN Inc and Costco Wholesale Corp, you can compare the effects of market volatilities on AXMIN and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXMIN and Costco Wholesale.
Diversification Opportunities for AXMIN and Costco Wholesale
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXMIN and Costco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AXMIN Inc and Costco Wholesale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale Corp 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale Corp has no effect on the direction of AXMIN i.e., AXMIN and Costco Wholesale go up and down completely randomly.
Pair Corralation between AXMIN and Costco Wholesale
If you would invest 89,580 in Costco Wholesale Corp on October 25, 2024 and sell it today you would earn a total of 1,010 from holding Costco Wholesale Corp or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXMIN Inc vs. Costco Wholesale Corp
Performance |
| Timeline |
| AXMIN Inc |
| Costco Wholesale Corp |
AXMIN and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXMIN and Costco Wholesale
The main advantage of trading using opposite AXMIN and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXMIN position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| AXMIN vs. Costco Wholesale Corp | AXMIN vs. Highlight Communications AG | AXMIN vs. Comba Telecom Systems | AXMIN vs. National Retail Properties |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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