Correlation Between AB International and Axihub
Can any of the company-specific risk be diversified away by investing in both AB International and Axihub 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 AB International and Axihub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB International Group and Axihub Inc, you can compare the effects of market volatilities on AB International and Axihub 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 AB International with a short position of Axihub. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB International and Axihub.
Diversification Opportunities for AB International and Axihub
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABQQ and Axihub is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AB International Group and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and AB International 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 AB International Group are associated (or correlated) with Axihub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axihub Inc has no effect on the direction of AB International i.e., AB International and Axihub go up and down completely randomly.
Pair Corralation between AB International and Axihub
Given the investment horizon of 90 days AB International Group is expected to generate 1.14 times more return on investment than Axihub. However, AB International is 1.14 times more volatile than Axihub Inc. It trades about 0.13 of its potential returns per unit of risk. Axihub Inc is currently generating about 0.1 per unit of risk. If you would invest 0.02 in AB International Group on August 31, 2024 and sell it today you would earn a total of 0.06 from holding AB International Group or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.29% |
| Values | Daily Returns |
AB International Group vs. Axihub Inc
Performance |
| Timeline |
| AB International |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AB International and Axihub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB International and Axihub
The main advantage of trading using opposite AB International and Axihub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB International position performs unexpectedly, Axihub 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 Axihub will offset losses from the drop in Axihub's long position.| AB International vs. Peer To Peer | AB International vs. AppYea Inc | AB International vs. Image Protect | AB International vs. Bowmo Inc |
| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
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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