Correlation Between Applovin Corp and Axihub
Can any of the company-specific risk be diversified away by investing in both Applovin Corp 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 Applovin Corp and Axihub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applovin Corp and Axihub Inc, you can compare the effects of market volatilities on Applovin Corp 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 Applovin Corp with a short position of Axihub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applovin Corp and Axihub.
Diversification Opportunities for Applovin Corp and Axihub
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applovin and Axihub is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and Applovin Corp 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 Applovin Corp 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 Applovin Corp i.e., Applovin Corp and Axihub go up and down completely randomly.
Pair Corralation between Applovin Corp and Axihub
If you would invest 12,775 in Applovin Corp on August 28, 2024 and sell it today you would earn a total of 20,202 from holding Applovin Corp or generate 158.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Applovin Corp vs. Axihub Inc
Performance |
| Timeline |
| Applovin Corp |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Applovin Corp and Axihub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applovin Corp and Axihub
The main advantage of trading using opposite Applovin Corp and Axihub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applovin Corp 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.The idea behind Applovin Corp and Axihub Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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