Correlation Between Axis Bank and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Axis Bank and Hong Kong 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 Axis Bank and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axis Bank Ltd and Hong Kong Land, you can compare the effects of market volatilities on Axis Bank and Hong Kong 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 Axis Bank with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Bank and Hong Kong.
Diversification Opportunities for Axis Bank and Hong Kong
Pay attention - limited upside
The 3 months correlation between Axis and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axis Bank Ltd and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land and Axis Bank 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 Axis Bank Ltd are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Axis Bank i.e., Axis Bank and Hong Kong go up and down completely randomly.
Pair Corralation between Axis Bank and Hong Kong
If you would invest 5,480 in Axis Bank Ltd on November 28, 2024 and sell it today you would earn a total of 300.00 from holding Axis Bank Ltd or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Axis Bank Ltd vs. Hong Kong Land
Performance |
| Timeline |
| Axis Bank |
| Hong Kong Land |
Axis Bank and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axis Bank and Hong Kong
The main advantage of trading using opposite Axis Bank and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axis Bank position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Axis Bank vs. Kinnevik Investment AB | Axis Bank vs. Sydbank | Axis Bank vs. Chrysalis Investments | Axis Bank vs. Cembra Money Bank |
| Hong Kong vs. Scandinavian Tobacco Group | Hong Kong vs. Austevoll Seafood ASA | Hong Kong vs. Tyson Foods Cl | Hong Kong vs. Extra Space Storage |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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