Correlation Between Axion Power and Alfen NV
Can any of the company-specific risk be diversified away by investing in both Axion Power and Alfen NV 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 Axion Power and Alfen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axion Power International and Alfen NV, you can compare the effects of market volatilities on Axion Power and Alfen NV 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 Axion Power with a short position of Alfen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axion Power and Alfen NV.
Diversification Opportunities for Axion Power and Alfen NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axion and Alfen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axion Power International and Alfen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfen NV and Axion Power 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 Axion Power International are associated (or correlated) with Alfen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfen NV has no effect on the direction of Axion Power i.e., Axion Power and Alfen NV go up and down completely randomly.
Pair Corralation between Axion Power and Alfen NV
If you would invest 0.01 in Axion Power International on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Axion Power International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Axion Power International vs. Alfen NV
Performance |
| Timeline |
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alfen NV |
Axion Power and Alfen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axion Power and Alfen NV
The main advantage of trading using opposite Axion Power and Alfen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axion Power position performs unexpectedly, Alfen NV 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 Alfen NV will offset losses from the drop in Alfen NV's long position.| Axion Power vs. AFC Energy plc | Axion Power vs. ADS TEC ENERGY PLC | Axion Power vs. ABB | Axion Power vs. Ads Tec Energy |
| Alfen NV vs. Copa Holdings SA | Alfen NV vs. United Airlines Holdings | Alfen NV vs. Delta Air Lines | Alfen NV vs. SkyWest |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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