Correlation Between AXichem AB and MilDef Group
Can any of the company-specific risk be diversified away by investing in both AXichem AB and MilDef Group 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 MilDef Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between aXichem AB and MilDef Group AB, you can compare the effects of market volatilities on AXichem AB and MilDef Group 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 MilDef Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXichem AB and MilDef Group.
Diversification Opportunities for AXichem AB and MilDef Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXichem and MilDef is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding aXichem AB and MilDef Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MilDef Group AB 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 MilDef Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MilDef Group AB has no effect on the direction of AXichem AB i.e., AXichem AB and MilDef Group go up and down completely randomly.
Pair Corralation between AXichem AB and MilDef Group
If you would invest 12,760 in MilDef Group AB on November 8, 2024 and sell it today you would lose (20.00) from holding MilDef Group AB or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
aXichem AB vs. MilDef Group AB
Performance |
| Timeline |
| aXichem AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MilDef Group AB |
AXichem AB and MilDef Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXichem AB and MilDef Group
The main advantage of trading using opposite AXichem AB and MilDef Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXichem AB position performs unexpectedly, MilDef Group 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 MilDef Group will offset losses from the drop in MilDef Group's long position.The idea behind aXichem AB and MilDef Group AB 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.| MilDef Group vs. eEducation Albert AB | MilDef Group vs. Investment AB Oresund | MilDef Group vs. Diamyd Medical AB | MilDef Group vs. JLT Mobile Computers |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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