Correlation Between Axalta Coating and GLOBAL
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By analyzing existing cross correlation between Axalta Coating Systems and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Axalta Coating and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and GLOBAL.
Diversification Opportunities for Axalta Coating and GLOBAL
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axalta and GLOBAL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Axalta Coating i.e., Axalta Coating and GLOBAL go up and down completely randomly.
Pair Corralation between Axalta Coating and GLOBAL
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 0.96 times more return on investment than GLOBAL. However, Axalta Coating Systems is 1.04 times less risky than GLOBAL. It trades about 0.22 of its potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.22 per unit of risk. If you would invest 3,808 in Axalta Coating Systems on September 4, 2024 and sell it today you would earn a total of 251.00 from holding Axalta Coating Systems or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Axalta Coating Systems vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Axalta Coating Systems |
| GLOBAL PAYMENTS INC |
Axalta Coating and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and GLOBAL
The main advantage of trading using opposite Axalta Coating and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| GLOBAL vs. The Cheesecake Factory | GLOBAL vs. RCI Hospitality Holdings | GLOBAL vs. American Axle Manufacturing | GLOBAL vs. Kura Sushi USA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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