Correlation Between Axalta Coating and Transgene
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and Transgene 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 Transgene 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 Transgene SA, you can compare the effects of market volatilities on Axalta Coating and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and Transgene.
Diversification Opportunities for Axalta Coating and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axalta and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Axalta Coating i.e., Axalta Coating and Transgene go up and down completely randomly.
Pair Corralation between Axalta Coating and Transgene
If you would invest 3,385 in Axalta Coating Systems on November 4, 2024 and sell it today you would earn a total of 209.00 from holding Axalta Coating Systems or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axalta Coating Systems vs. Transgene SA
Performance |
| Timeline |
| Axalta Coating Systems |
| Transgene SA |
Axalta Coating and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and Transgene
The main advantage of trading using opposite Axalta Coating and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| Transgene vs. ANTA Sports Products | Transgene vs. Lindblad Expeditions Holdings | Transgene vs. Toro | Transgene vs. Hasbro Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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