Correlation Between XTRA Bitcoin and Axis Technologies
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Axis Technologies 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 XTRA Bitcoin and Axis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and Axis Technologies Group, you can compare the effects of market volatilities on XTRA Bitcoin and Axis Technologies 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 XTRA Bitcoin with a short position of Axis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Axis Technologies.
Diversification Opportunities for XTRA Bitcoin and Axis Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XTRA and Axis is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Axis Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Technologies and XTRA Bitcoin 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 XTRA Bitcoin are associated (or correlated) with Axis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Technologies has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Axis Technologies go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Axis Technologies
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 14.32 times less return on investment than Axis Technologies. But when comparing it to its historical volatility, XTRA Bitcoin is 4.64 times less risky than Axis Technologies. It trades about 0.04 of its potential returns per unit of risk. Axis Technologies Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.59 in Axis Technologies Group on August 29, 2024 and sell it today you would lose (0.45) from holding Axis Technologies Group or give up 76.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTRA Bitcoin vs. Axis Technologies Group
Performance |
| Timeline |
| XTRA Bitcoin |
| Axis Technologies |
XTRA Bitcoin and Axis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Axis Technologies
The main advantage of trading using opposite XTRA Bitcoin and Axis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Axis Technologies 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 Axis Technologies will offset losses from the drop in Axis Technologies' long position.| XTRA Bitcoin vs. Apple Inc | XTRA Bitcoin vs. Microsoft | XTRA Bitcoin vs. Alphabet Inc Class C | XTRA Bitcoin vs. Meta Platforms |
| Axis Technologies vs. SPENN Technology AS | Axis Technologies vs. OFX Group Ltd | Axis Technologies vs. APAC Resources Limited | Axis Technologies vs. Cypherpunk Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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