Correlation Between Axalta Coating and ALBERTSONS
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By analyzing existing cross correlation between Axalta Coating Systems and ALBERTSONS INC 75, you can compare the effects of market volatilities on Axalta Coating and ALBERTSONS 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 ALBERTSONS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and ALBERTSONS.
Diversification Opportunities for Axalta Coating and ALBERTSONS
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axalta and ALBERTSONS is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and ALBERTSONS INC 75 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBERTSONS INC 75 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 ALBERTSONS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBERTSONS INC 75 has no effect on the direction of Axalta Coating i.e., Axalta Coating and ALBERTSONS go up and down completely randomly.
Pair Corralation between Axalta Coating and ALBERTSONS
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 5.76 times more return on investment than ALBERTSONS. However, Axalta Coating is 5.76 times more volatile than ALBERTSONS INC 75. It trades about 0.06 of its potential returns per unit of risk. ALBERTSONS INC 75 is currently generating about 0.05 per unit of risk. If you would invest 3,603 in Axalta Coating Systems on September 5, 2024 and sell it today you would earn a total of 430.00 from holding Axalta Coating Systems or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.2% |
| Values | Daily Returns |
Axalta Coating Systems vs. ALBERTSONS INC 75
Performance |
| Timeline |
| Axalta Coating Systems |
| ALBERTSONS INC 75 |
Axalta Coating and ALBERTSONS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and ALBERTSONS
The main advantage of trading using opposite Axalta Coating and ALBERTSONS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, ALBERTSONS 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 ALBERTSONS will offset losses from the drop in ALBERTSONS's long position.The idea behind Axalta Coating Systems and ALBERTSONS INC 75 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ALBERTSONS vs. Verde Clean Fuels | ALBERTSONS vs. Axalta Coating Systems | ALBERTSONS vs. Balchem | ALBERTSONS vs. Sealed Air |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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