Correlation Between Axion Power and AFC Energy
Can any of the company-specific risk be diversified away by investing in both Axion Power and AFC Energy 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 AFC Energy 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 AFC Energy plc, you can compare the effects of market volatilities on Axion Power and AFC Energy 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 AFC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axion Power and AFC Energy.
Diversification Opportunities for Axion Power and AFC Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axion and AFC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axion Power International and AFC Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Energy plc 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 AFC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Energy plc has no effect on the direction of Axion Power i.e., Axion Power and AFC Energy go up and down completely randomly.
Pair Corralation between Axion Power and AFC Energy
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 | 8.69% |
| Values | Daily Returns |
Axion Power International vs. AFC Energy plc
Performance |
| Timeline |
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AFC Energy plc |
Axion Power and AFC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axion Power and AFC Energy
The main advantage of trading using opposite Axion Power and AFC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axion Power position performs unexpectedly, AFC Energy 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 AFC Energy will offset losses from the drop in AFC Energy'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 |
| AFC Energy vs. FREYR Battery SA | AFC Energy vs. nVent Electric PLC | AFC Energy vs. Hubbell | AFC Energy vs. Advanced Energy Industries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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