Correlation Between Axim Biotechnologies and Grey Cloak
Can any of the company-specific risk be diversified away by investing in both Axim Biotechnologies and Grey Cloak 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 Axim Biotechnologies and Grey Cloak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axim Biotechnologies and Grey Cloak Tech, you can compare the effects of market volatilities on Axim Biotechnologies and Grey Cloak 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 Axim Biotechnologies with a short position of Grey Cloak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axim Biotechnologies and Grey Cloak.
Diversification Opportunities for Axim Biotechnologies and Grey Cloak
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Axim and Grey is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Axim Biotechnologies and Grey Cloak Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grey Cloak Tech and Axim Biotechnologies 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 Axim Biotechnologies are associated (or correlated) with Grey Cloak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grey Cloak Tech has no effect on the direction of Axim Biotechnologies i.e., Axim Biotechnologies and Grey Cloak go up and down completely randomly.
Pair Corralation between Axim Biotechnologies and Grey Cloak
Given the investment horizon of 90 days Axim Biotechnologies is expected to generate 1.5 times less return on investment than Grey Cloak. In addition to that, Axim Biotechnologies is 1.49 times more volatile than Grey Cloak Tech. It trades about 0.09 of its total potential returns per unit of risk. Grey Cloak Tech is currently generating about 0.21 per unit of volatility. If you would invest 180.00 in Grey Cloak Tech on September 12, 2024 and sell it today you would earn a total of 145.00 from holding Grey Cloak Tech or generate 80.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Axim Biotechnologies vs. Grey Cloak Tech
Performance |
| Timeline |
| Axim Biotechnologies |
| Grey Cloak Tech |
Axim Biotechnologies and Grey Cloak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axim Biotechnologies and Grey Cloak
The main advantage of trading using opposite Axim Biotechnologies and Grey Cloak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axim Biotechnologies position performs unexpectedly, Grey Cloak 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 Grey Cloak will offset losses from the drop in Grey Cloak's long position.| Axim Biotechnologies vs. Grey Cloak Tech | Axim Biotechnologies vs. CuraScientific Corp | Axim Biotechnologies vs. Love Hemp Group | Axim Biotechnologies vs. Greater Cannabis |
| Grey Cloak vs. ManifestSeven Holdings | Grey Cloak vs. Pure Harvest Cannabis | Grey Cloak vs. Ionic Brands Corp | Grey Cloak vs. CuraScientific Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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