Correlation Between Axon Enterprise and HelloFresh
Can any of the company-specific risk be diversified away by investing in both Axon Enterprise and HelloFresh 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 Axon Enterprise and HelloFresh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axon Enterprise and HelloFresh SE, you can compare the effects of market volatilities on Axon Enterprise and HelloFresh 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 Axon Enterprise with a short position of HelloFresh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axon Enterprise and HelloFresh.
Diversification Opportunities for Axon Enterprise and HelloFresh
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axon and HelloFresh is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Axon Enterprise and HelloFresh SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HelloFresh SE and Axon Enterprise 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 Axon Enterprise are associated (or correlated) with HelloFresh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HelloFresh SE has no effect on the direction of Axon Enterprise i.e., Axon Enterprise and HelloFresh go up and down completely randomly.
Pair Corralation between Axon Enterprise and HelloFresh
Given the investment horizon of 90 days Axon Enterprise is expected to generate 0.5 times more return on investment than HelloFresh. However, Axon Enterprise is 2.0 times less risky than HelloFresh. It trades about 0.1 of its potential returns per unit of risk. HelloFresh SE is currently generating about 0.0 per unit of risk. If you would invest 21,686 in Axon Enterprise on November 28, 2024 and sell it today you would earn a total of 27,979 from holding Axon Enterprise or generate 129.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axon Enterprise vs. HelloFresh SE
Performance |
| Timeline |
| Axon Enterprise |
| HelloFresh SE |
Axon Enterprise and HelloFresh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axon Enterprise and HelloFresh
The main advantage of trading using opposite Axon Enterprise and HelloFresh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axon Enterprise position performs unexpectedly, HelloFresh 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 HelloFresh will offset losses from the drop in HelloFresh's long position.| Axon Enterprise vs. Novocure | Axon Enterprise vs. HubSpot | Axon Enterprise vs. DigitalOcean Holdings | Axon Enterprise vs. Appian Corp |
| HelloFresh vs. Biglari Holdings | HelloFresh vs. Potbelly Co | HelloFresh vs. Restaurant Brands International | HelloFresh vs. Red Robin Gourmet |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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