Correlation Between AXichem AB and Alelion Energy
Can any of the company-specific risk be diversified away by investing in both AXichem AB and Alelion Energy 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 AXichem AB and Alelion Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between aXichem AB and Alelion Energy Systems, you can compare the effects of market volatilities on AXichem AB and Alelion Energy 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 AXichem AB with a short position of Alelion Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXichem AB and Alelion Energy.
Diversification Opportunities for AXichem AB and Alelion Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXichem and Alelion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding aXichem AB and Alelion Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alelion Energy Systems and AXichem 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 aXichem AB are associated (or correlated) with Alelion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alelion Energy Systems has no effect on the direction of AXichem AB i.e., AXichem AB and Alelion Energy go up and down completely randomly.
Pair Corralation between AXichem AB and Alelion Energy
If you would invest 118.00 in aXichem AB on August 29, 2024 and sell it today you would earn a total of 14.00 from holding aXichem AB or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
aXichem AB vs. Alelion Energy Systems
Performance |
| Timeline |
| aXichem AB |
| Alelion Energy Systems |
AXichem AB and Alelion Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXichem AB and Alelion Energy
The main advantage of trading using opposite AXichem AB and Alelion Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXichem AB position performs unexpectedly, Alelion Energy 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 Alelion Energy will offset losses from the drop in Alelion Energy's long position.| AXichem AB vs. Enzymatica publ AB | AXichem AB vs. Cantargia AB | AXichem AB vs. BIMobject AB | AXichem AB vs. Alzinova AB |
| Alelion Energy vs. Arise Windpower AB | Alelion Energy vs. Impact Coatings publ | Alelion Energy vs. SolTech Energy Sweden | Alelion Energy vs. Crunchfish AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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