Correlation Between AXIA Energia and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both AXIA Energia and CEWE Stiftung 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 AXIA Energia and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXIA Energia and CEWE Stiftung Co, you can compare the effects of market volatilities on AXIA Energia and CEWE Stiftung 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 AXIA Energia with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXIA Energia and CEWE Stiftung.
Diversification Opportunities for AXIA Energia and CEWE Stiftung
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AXIA and CEWE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding AXIA Energia and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and AXIA Energia 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 AXIA Energia are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of AXIA Energia i.e., AXIA Energia and CEWE Stiftung go up and down completely randomly.
Pair Corralation between AXIA Energia and CEWE Stiftung
Given the investment horizon of 90 days AXIA Energia is expected to generate 5.39 times more return on investment than CEWE Stiftung. However, AXIA Energia is 5.39 times more volatile than CEWE Stiftung Co. It trades about 0.11 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.05 per unit of risk. If you would invest 795.00 in AXIA Energia on November 4, 2025 and sell it today you would earn a total of 237.00 from holding AXIA Energia or generate 29.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
AXIA Energia vs. CEWE Stiftung Co
Performance |
| Timeline |
| AXIA Energia |
| CEWE Stiftung |
AXIA Energia and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXIA Energia and CEWE Stiftung
The main advantage of trading using opposite AXIA Energia and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXIA Energia position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| AXIA Energia vs. Fortis Inc | AXIA Energia vs. CMS Energy | AXIA Energia vs. Southern Company | AXIA Energia vs. FirstEnergy |
| CEWE Stiftung vs. Magnachip Semiconductor | CEWE Stiftung vs. NXP Semiconductors NV | CEWE Stiftung vs. National Beverage Corp | CEWE Stiftung vs. WILDPACK BEVERAGE INC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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