Correlation Between Axfood AB and Peab AB
Can any of the company-specific risk be diversified away by investing in both Axfood AB and Peab AB 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 Axfood AB and Peab AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and Peab AB, you can compare the effects of market volatilities on Axfood AB and Peab AB 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 Axfood AB with a short position of Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and Peab AB.
Diversification Opportunities for Axfood AB and Peab AB
Very good diversification
The 3 months correlation between Axfood and Peab is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab AB and Axfood AB 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 Axfood AB are associated (or correlated) with Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Axfood AB i.e., Axfood AB and Peab AB go up and down completely randomly.
Pair Corralation between Axfood AB and Peab AB
Assuming the 90 days trading horizon Axfood AB is expected to generate 0.64 times more return on investment than Peab AB. However, Axfood AB is 1.55 times less risky than Peab AB. It trades about 0.11 of its potential returns per unit of risk. Peab AB is currently generating about 0.07 per unit of risk. If you would invest 23,200 in Axfood AB on October 24, 2024 and sell it today you would earn a total of 430.00 from holding Axfood AB or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axfood AB vs. Peab AB
Performance |
| Timeline |
| Axfood AB |
| Peab AB |
Axfood AB and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and Peab AB
The main advantage of trading using opposite Axfood AB and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB position performs unexpectedly, Peab AB 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 Peab AB will offset losses from the drop in Peab AB's long position.| Axfood AB vs. Castellum AB | Axfood AB vs. Tele2 AB | Axfood AB vs. Investor AB ser | Axfood AB vs. Kinnevik Investment AB |
| Peab AB vs. MTI Investment SE | Peab AB vs. Invisio Communications AB | Peab AB vs. G5 Entertainment publ | Peab AB vs. Viva Wine Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |