Correlation Between AUST AGRICULTURAL and Axonics
Can any of the company-specific risk be diversified away by investing in both AUST AGRICULTURAL and Axonics 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 AUST AGRICULTURAL and Axonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUST AGRICULTURAL and Axonics, you can compare the effects of market volatilities on AUST AGRICULTURAL and Axonics 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 AUST AGRICULTURAL with a short position of Axonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUST AGRICULTURAL and Axonics.
Diversification Opportunities for AUST AGRICULTURAL and Axonics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUST and Axonics is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding AUST AGRICULTURAL and Axonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonics and AUST AGRICULTURAL 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 AUST AGRICULTURAL are associated (or correlated) with Axonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonics has no effect on the direction of AUST AGRICULTURAL i.e., AUST AGRICULTURAL and Axonics go up and down completely randomly.
Pair Corralation between AUST AGRICULTURAL and Axonics
Assuming the 90 days trading horizon AUST AGRICULTURAL is expected to under-perform the Axonics. But the stock apears to be less risky and, when comparing its historical volatility, AUST AGRICULTURAL is 1.52 times less risky than Axonics. The stock trades about 0.0 of its potential returns per unit of risk. The Axonics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,500 in Axonics on September 12, 2024 and sell it today you would earn a total of 1,850 from holding Axonics or generate 41.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.85% |
| Values | Daily Returns |
AUST AGRICULTURAL vs. Axonics
Performance |
| Timeline |
| AUST AGRICULTURAL |
| Axonics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AUST AGRICULTURAL and Axonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUST AGRICULTURAL and Axonics
The main advantage of trading using opposite AUST AGRICULTURAL and Axonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUST AGRICULTURAL position performs unexpectedly, Axonics 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 Axonics will offset losses from the drop in Axonics' long position.| AUST AGRICULTURAL vs. Apple Inc | AUST AGRICULTURAL vs. Apple Inc | AUST AGRICULTURAL vs. Apple Inc | AUST AGRICULTURAL vs. Apple Inc |
| Axonics vs. Broadcom | Axonics vs. Vastned Retail NV | Axonics vs. QUEEN S ROAD | Axonics vs. TRAINLINE PLC LS |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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