Correlation Between Axon Enterprise and EXELON
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By analyzing existing cross correlation between Axon Enterprise and EXELON GENERATION LLC, you can compare the effects of market volatilities on Axon Enterprise and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axon Enterprise and EXELON.
Diversification Opportunities for Axon Enterprise and EXELON
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axon and EXELON is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Axon Enterprise and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Axon Enterprise i.e., Axon Enterprise and EXELON go up and down completely randomly.
Pair Corralation between Axon Enterprise and EXELON
Given the investment horizon of 90 days Axon Enterprise is expected to generate 6.02 times more return on investment than EXELON. However, Axon Enterprise is 6.02 times more volatile than EXELON GENERATION LLC. It trades about 0.28 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.1 per unit of risk. If you would invest 44,269 in Axon Enterprise on August 24, 2024 and sell it today you would earn a total of 18,858 from holding Axon Enterprise or generate 42.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Axon Enterprise vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Axon Enterprise |
| EXELON GENERATION LLC |
Axon Enterprise and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axon Enterprise and EXELON
The main advantage of trading using opposite Axon Enterprise and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axon Enterprise position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Axon Enterprise vs. Novocure | Axon Enterprise vs. HubSpot | Axon Enterprise vs. DigitalOcean Holdings | Axon Enterprise vs. Appian Corp |
| EXELON vs. Oasis Hotel Resort | EXELON vs. Shake Shack | EXELON vs. Tradeweb Markets | EXELON vs. Biglari Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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