Correlation Between Axway Software and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Axway Software and Affluent Medical 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 Axway Software and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axway Software and Affluent Medical SAS, you can compare the effects of market volatilities on Axway Software and Affluent Medical 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 Axway Software with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Affluent Medical.
Diversification Opportunities for Axway Software and Affluent Medical
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axway and Affluent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Axway Software 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 Axway Software are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Axway Software i.e., Axway Software and Affluent Medical go up and down completely randomly.
Pair Corralation between Axway Software and Affluent Medical
Assuming the 90 days trading horizon Axway Software is expected to generate 0.54 times more return on investment than Affluent Medical. However, Axway Software is 1.84 times less risky than Affluent Medical. It trades about 0.11 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.02 per unit of risk. If you would invest 2,146 in Axway Software on September 1, 2024 and sell it today you would earn a total of 574.00 from holding Axway Software or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software vs. Affluent Medical SAS
Performance |
| Timeline |
| Axway Software |
| Affluent Medical SAS |
Axway Software and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Affluent Medical
The main advantage of trading using opposite Axway Software and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Axway Software vs. Sopra Steria Group | Axway Software vs. Aubay Socit Anonyme | Axway Software vs. Lectra SA | Axway Software vs. Esker SA |
| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Omer Decugis Cie |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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