Correlation Between AXIA Energia and Guidant Corp

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Can any of the company-specific risk be diversified away by investing in both AXIA Energia and Guidant Corp 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 Guidant Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXIA Energia and Guidant Corp, you can compare the effects of market volatilities on AXIA Energia and Guidant Corp 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 Guidant Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXIA Energia and Guidant Corp.

Diversification Opportunities for AXIA Energia and Guidant Corp

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AXIA and Guidant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AXIA Energia and Guidant Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidant Corp 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 Guidant Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidant Corp has no effect on the direction of AXIA Energia i.e., AXIA Energia and Guidant Corp go up and down completely randomly.

Pair Corralation between AXIA Energia and Guidant Corp

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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AXIA Energia  vs.  Guidant Corp

 Performance 
       Timeline  
AXIA Energia 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AXIA Energia are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, AXIA Energia sustained solid returns over the last few months and may actually be approaching a breakup point.
Guidant Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Guidant Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Guidant Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

AXIA Energia and Guidant Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AXIA Energia and Guidant Corp

The main advantage of trading using opposite AXIA Energia and Guidant Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXIA Energia position performs unexpectedly, Guidant Corp 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 Guidant Corp will offset losses from the drop in Guidant Corp's long position.
The idea behind AXIA Energia and Guidant Corp 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.
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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