Correlation Between Axactor SE and Zaptec AS
Can any of the company-specific risk be diversified away by investing in both Axactor SE and Zaptec AS 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 Axactor SE and Zaptec AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axactor SE and Zaptec AS, you can compare the effects of market volatilities on Axactor SE and Zaptec AS 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 Axactor SE with a short position of Zaptec AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axactor SE and Zaptec AS.
Diversification Opportunities for Axactor SE and Zaptec AS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axactor and Zaptec is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Axactor SE and Zaptec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaptec AS and Axactor SE 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 Axactor SE are associated (or correlated) with Zaptec AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaptec AS has no effect on the direction of Axactor SE i.e., Axactor SE and Zaptec AS go up and down completely randomly.
Pair Corralation between Axactor SE and Zaptec AS
Assuming the 90 days trading horizon Axactor SE is expected to generate 0.55 times more return on investment than Zaptec AS. However, Axactor SE is 1.82 times less risky than Zaptec AS. It trades about -0.05 of its potential returns per unit of risk. Zaptec AS is currently generating about -0.03 per unit of risk. If you would invest 605.00 in Axactor SE on September 3, 2024 and sell it today you would lose (260.00) from holding Axactor SE or give up 42.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axactor SE vs. Zaptec AS
Performance |
| Timeline |
| Axactor SE |
| Zaptec AS |
Axactor SE and Zaptec AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axactor SE and Zaptec AS
The main advantage of trading using opposite Axactor SE and Zaptec AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axactor SE position performs unexpectedly, Zaptec AS 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 Zaptec AS will offset losses from the drop in Zaptec AS's long position.| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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