Correlation Between BE Group and AXichem AB
Can any of the company-specific risk be diversified away by investing in both BE Group and AXichem AB 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 BE Group and AXichem AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BE Group AB and aXichem AB, you can compare the effects of market volatilities on BE Group and AXichem AB 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 BE Group with a short position of AXichem AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Group and AXichem AB.
Diversification Opportunities for BE Group and AXichem AB
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEGR and AXichem is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BE Group AB and aXichem AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on aXichem AB and BE Group 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 BE Group AB are associated (or correlated) with AXichem AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of aXichem AB has no effect on the direction of BE Group i.e., BE Group and AXichem AB go up and down completely randomly.
Pair Corralation between BE Group and AXichem AB
Assuming the 90 days trading horizon BE Group AB is expected to under-perform the AXichem AB. But the stock apears to be less risky and, when comparing its historical volatility, BE Group AB is 5.71 times less risky than AXichem AB. The stock trades about -0.29 of its potential returns per unit of risk. The aXichem AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 136.00 in aXichem AB on August 30, 2024 and sell it today you would lose (7.00) from holding aXichem AB or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Group AB vs. aXichem AB
Performance |
| Timeline |
| BE Group AB |
| aXichem AB |
BE Group and AXichem AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Group and AXichem AB
The main advantage of trading using opposite BE Group and AXichem AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Group position performs unexpectedly, AXichem AB 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 AXichem AB will offset losses from the drop in AXichem AB's long position.| BE Group vs. Troax Group AB | BE Group vs. NIBE Industrier AB | BE Group vs. Hexatronic Group AB | BE Group vs. Bufab Holding AB |
| AXichem AB vs. Enzymatica publ AB | AXichem AB vs. Cantargia AB | AXichem AB vs. BIMobject AB | AXichem AB vs. Alzinova AB |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |