Correlation Between Avax SA and Austriacard Holdings
Can any of the company-specific risk be diversified away by investing in both Avax SA and Austriacard Holdings 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 Avax SA and Austriacard Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avax SA and Austriacard Holdings AG, you can compare the effects of market volatilities on Avax SA and Austriacard Holdings 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 Avax SA with a short position of Austriacard Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax SA and Austriacard Holdings.
Diversification Opportunities for Avax SA and Austriacard Holdings
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Avax and Austriacard is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Avax SA and Austriacard Holdings AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austriacard Holdings and Avax SA 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 Avax SA are associated (or correlated) with Austriacard Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austriacard Holdings has no effect on the direction of Avax SA i.e., Avax SA and Austriacard Holdings go up and down completely randomly.
Pair Corralation between Avax SA and Austriacard Holdings
Assuming the 90 days trading horizon Avax SA is expected to generate 1.43 times more return on investment than Austriacard Holdings. However, Avax SA is 1.43 times more volatile than Austriacard Holdings AG. It trades about 0.24 of its potential returns per unit of risk. Austriacard Holdings AG is currently generating about 0.18 per unit of risk. If you would invest 140.00 in Avax SA on September 19, 2024 and sell it today you would earn a total of 15.00 from holding Avax SA or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avax SA vs. Austriacard Holdings AG
Performance |
| Timeline |
| Avax SA |
| Austriacard Holdings |
Avax SA and Austriacard Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avax SA and Austriacard Holdings
The main advantage of trading using opposite Avax SA and Austriacard Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax SA position performs unexpectedly, Austriacard Holdings 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 Austriacard Holdings will offset losses from the drop in Austriacard Holdings' long position.The idea behind Avax SA and Austriacard Holdings AG 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.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |