Correlation Between Axalta Coating and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Axalta Coating and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and Mountain Crest.
Diversification Opportunities for Axalta Coating and Mountain Crest
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axalta and Mountain is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Axalta Coating i.e., Axalta Coating and Mountain Crest go up and down completely randomly.
Pair Corralation between Axalta Coating and Mountain Crest
If you would invest 3,558 in Axalta Coating Systems on August 25, 2024 and sell it today you would earn a total of 494.00 from holding Axalta Coating Systems or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Axalta Coating Systems vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Axalta Coating Systems |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axalta Coating and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and Mountain Crest
The main advantage of trading using opposite Axalta Coating and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| Mountain Crest vs. Hawkins | Mountain Crest vs. Luxfer Holdings PLC | Mountain Crest vs. Axalta Coating Systems | Mountain Crest vs. Mativ Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |