Correlation Between Axalta Coating and Maquia Capital
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and Maquia Capital 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 Maquia Capital 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 Maquia Capital Acquisition, you can compare the effects of market volatilities on Axalta Coating and Maquia Capital 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 Maquia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and Maquia Capital.
Diversification Opportunities for Axalta Coating and Maquia Capital
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axalta and Maquia is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and Maquia Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maquia Capital Acqui 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 Maquia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maquia Capital Acqui has no effect on the direction of Axalta Coating i.e., Axalta Coating and Maquia Capital go up and down completely randomly.
Pair Corralation between Axalta Coating and Maquia Capital
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 3.92 times more return on investment than Maquia Capital. However, Axalta Coating is 3.92 times more volatile than Maquia Capital Acquisition. It trades about 0.06 of its potential returns per unit of risk. Maquia Capital Acquisition is currently generating about -0.04 per unit of risk. If you would invest 3,100 in Axalta Coating Systems on September 14, 2024 and sell it today you would earn a total of 717.00 from holding Axalta Coating Systems or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.06% |
| Values | Daily Returns |
Axalta Coating Systems vs. Maquia Capital Acquisition
Performance |
| Timeline |
| Axalta Coating Systems |
| Maquia Capital Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axalta Coating and Maquia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and Maquia Capital
The main advantage of trading using opposite Axalta Coating and Maquia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, Maquia Capital 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 Maquia Capital will offset losses from the drop in Maquia Capital's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| Maquia Capital vs. Axalta Coating Systems | Maquia Capital vs. Ryanair Holdings PLC | Maquia Capital vs. Stepan Company | Maquia Capital vs. Luxfer Holdings PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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