Correlation Between Buyer Group and Axihub
Can any of the company-specific risk be diversified away by investing in both Buyer Group and Axihub 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 Buyer Group and Axihub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buyer Group International and Axihub Inc, you can compare the effects of market volatilities on Buyer Group and Axihub 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 Buyer Group with a short position of Axihub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buyer Group and Axihub.
Diversification Opportunities for Buyer Group and Axihub
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Buyer and Axihub is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Buyer Group International and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and Buyer 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 Buyer Group International are associated (or correlated) with Axihub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axihub Inc has no effect on the direction of Buyer Group i.e., Buyer Group and Axihub go up and down completely randomly.
Pair Corralation between Buyer Group and Axihub
If you would invest 0.25 in Buyer Group International on September 4, 2024 and sell it today you would lose (0.12) from holding Buyer Group International or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
Buyer Group International vs. Axihub Inc
Performance |
| Timeline |
| Buyer Group International |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Buyer Group and Axihub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buyer Group and Axihub
The main advantage of trading using opposite Buyer Group and Axihub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buyer Group position performs unexpectedly, Axihub 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 Axihub will offset losses from the drop in Axihub's long position.| Buyer Group vs. Star Royalties | Buyer Group vs. Defiance Silver Corp | Buyer Group vs. Diamond Fields Resources | Buyer Group vs. GoGold Resources |
| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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