Correlation Between Axion Power and Legrand SA
Can any of the company-specific risk be diversified away by investing in both Axion Power and Legrand SA 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 Legrand SA 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 Legrand SA ADR, you can compare the effects of market volatilities on Axion Power and Legrand SA 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 Legrand SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axion Power and Legrand SA.
Diversification Opportunities for Axion Power and Legrand SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axion and Legrand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axion Power International and Legrand SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legrand SA ADR 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 Legrand SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legrand SA ADR has no effect on the direction of Axion Power i.e., Axion Power and Legrand SA go up and down completely randomly.
Pair Corralation between Axion Power and Legrand SA
If you would invest 1,602 in Legrand SA ADR on August 24, 2024 and sell it today you would earn a total of 403.00 from holding Legrand SA ADR or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Axion Power International vs. Legrand SA ADR
Performance |
| Timeline |
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Legrand SA ADR |
Axion Power and Legrand SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axion Power and Legrand SA
The main advantage of trading using opposite Axion Power and Legrand SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axion Power position performs unexpectedly, Legrand SA 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 Legrand SA will offset losses from the drop in Legrand SA'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 |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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