Correlation Between Axalta Coating and Collective Mining
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and Collective Mining 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 Axalta Coating and Collective Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axalta Coating Systems and Collective Mining, you can compare the effects of market volatilities on Axalta Coating and Collective Mining 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 Axalta Coating with a short position of Collective Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and Collective Mining.
Diversification Opportunities for Axalta Coating and Collective Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Axalta and Collective is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining and Axalta Coating 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 Axalta Coating Systems are associated (or correlated) with Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Axalta Coating i.e., Axalta Coating and Collective Mining go up and down completely randomly.
Pair Corralation between Axalta Coating and Collective Mining
Given the investment horizon of 90 days Axalta Coating is expected to generate 5.36 times less return on investment than Collective Mining. But when comparing it to its historical volatility, Axalta Coating Systems is 2.29 times less risky than Collective Mining. It trades about 0.05 of its potential returns per unit of risk. Collective Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 277.00 in Collective Mining on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Collective Mining or generate 36.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 40.73% |
| Values | Daily Returns |
Axalta Coating Systems vs. Collective Mining
Performance |
| Timeline |
| Axalta Coating Systems |
| Collective Mining |
Axalta Coating and Collective Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and Collective Mining
The main advantage of trading using opposite Axalta Coating and Collective Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, Collective Mining 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 Collective Mining will offset losses from the drop in Collective Mining's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| Collective Mining vs. Marfrig Global Foods | Collective Mining vs. Cadence Design Systems | Collective Mining vs. Asure Software | Collective Mining vs. Tyson Foods |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |