Correlation Between Allianz SE and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Allianz SE and AXWAY SOFTWARE 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 Allianz SE and AXWAY SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and AXWAY SOFTWARE EO, you can compare the effects of market volatilities on Allianz SE and AXWAY SOFTWARE 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 Allianz SE with a short position of AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and AXWAY SOFTWARE.
Diversification Opportunities for Allianz SE and AXWAY SOFTWARE
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allianz and AXWAY is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO and Allianz 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 Allianz SE are associated (or correlated) with AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of Allianz SE i.e., Allianz SE and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between Allianz SE and AXWAY SOFTWARE
Assuming the 90 days horizon Allianz SE is expected to under-perform the AXWAY SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, Allianz SE is 1.66 times less risky than AXWAY SOFTWARE. The stock trades about -0.09 of its potential returns per unit of risk. The AXWAY SOFTWARE EO is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,650 in AXWAY SOFTWARE EO on August 29, 2024 and sell it today you would earn a total of 40.00 from holding AXWAY SOFTWARE EO or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz SE vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| Allianz SE |
| AXWAY SOFTWARE EO |
Allianz SE and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and AXWAY SOFTWARE
The main advantage of trading using opposite Allianz SE and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| Allianz SE vs. AXWAY SOFTWARE EO | Allianz SE vs. Axcelis Technologies | Allianz SE vs. Sqs Software Quality | Allianz SE vs. MAGIC SOFTWARE ENTR |
| AXWAY SOFTWARE vs. Superior Plus Corp | AXWAY SOFTWARE vs. SIVERS SEMICONDUCTORS AB | AXWAY SOFTWARE vs. Talanx AG | AXWAY SOFTWARE vs. 2G ENERGY |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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