Correlation Between Axos Financial and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Axos Financial and CaliberCos 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 Axos Financial and CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and CaliberCos Class A, you can compare the effects of market volatilities on Axos Financial and CaliberCos 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 Axos Financial with a short position of CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and CaliberCos.
Diversification Opportunities for Axos Financial and CaliberCos
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axos and CaliberCos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A and Axos Financial 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 Axos Financial are associated (or correlated) with CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Axos Financial i.e., Axos Financial and CaliberCos go up and down completely randomly.
Pair Corralation between Axos Financial and CaliberCos
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 0.52 times more return on investment than CaliberCos. However, Axos Financial is 1.93 times less risky than CaliberCos. It trades about 0.14 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.02 per unit of risk. If you would invest 6,164 in Axos Financial on September 12, 2024 and sell it today you would earn a total of 1,837 from holding Axos Financial or generate 29.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. CaliberCos Class A
Performance |
| Timeline |
| Axos Financial |
| CaliberCos Class A |
Axos Financial and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and CaliberCos
The main advantage of trading using opposite Axos Financial and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| CaliberCos vs. Contagious Gaming | CaliberCos vs. Newpark Resources | CaliberCos vs. Tritent International Agriculture | CaliberCos vs. Tyson Foods |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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