Correlation Between Axilion Smart and Bio Meat
Can any of the company-specific risk be diversified away by investing in both Axilion Smart and Bio Meat 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 Axilion Smart and Bio Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axilion Smart Mobility and Bio Meat Foodtech, you can compare the effects of market volatilities on Axilion Smart and Bio Meat 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 Axilion Smart with a short position of Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axilion Smart and Bio Meat.
Diversification Opportunities for Axilion Smart and Bio Meat
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axilion and Bio is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Axilion Smart Mobility and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech and Axilion Smart 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 Axilion Smart Mobility are associated (or correlated) with Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of Axilion Smart i.e., Axilion Smart and Bio Meat go up and down completely randomly.
Pair Corralation between Axilion Smart and Bio Meat
Assuming the 90 days trading horizon Axilion Smart Mobility is expected to generate 1.56 times more return on investment than Bio Meat. However, Axilion Smart is 1.56 times more volatile than Bio Meat Foodtech. It trades about -0.02 of its potential returns per unit of risk. Bio Meat Foodtech is currently generating about -0.09 per unit of risk. If you would invest 9,300 in Axilion Smart Mobility on August 28, 2024 and sell it today you would lose (4,750) from holding Axilion Smart Mobility or give up 51.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axilion Smart Mobility vs. Bio Meat Foodtech
Performance |
| Timeline |
| Axilion Smart Mobility |
| Bio Meat Foodtech |
Axilion Smart and Bio Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axilion Smart and Bio Meat
The main advantage of trading using opposite Axilion Smart and Bio Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axilion Smart position performs unexpectedly, Bio Meat 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 Bio Meat will offset losses from the drop in Bio Meat's long position.| Axilion Smart vs. Oron Group Investments | Axilion Smart vs. Hiron Trade Investments Industrial | Axilion Smart vs. Arad Investment Industrial | Axilion Smart vs. TAT Technologies |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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