Correlation Between FEMALE HEALTH and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and AXWAY SOFTWARE 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 FEMALE HEALTH and AXWAY SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and AXWAY SOFTWARE EO, you can compare the effects of market volatilities on FEMALE HEALTH and AXWAY SOFTWARE 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 FEMALE HEALTH with a short position of AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and AXWAY SOFTWARE.
Diversification Opportunities for FEMALE HEALTH and AXWAY SOFTWARE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEMALE and AXWAY is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and AXWAY SOFTWARE
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 5.32 times more return on investment than AXWAY SOFTWARE. However, FEMALE HEALTH is 5.32 times more volatile than AXWAY SOFTWARE EO. It trades about 0.0 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about -0.06 per unit of risk. If you would invest 69.00 in FEMALE HEALTH on September 1, 2024 and sell it today you would lose (1.00) from holding FEMALE HEALTH or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| FEMALE HEALTH |
| AXWAY SOFTWARE EO |
FEMALE HEALTH and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and AXWAY SOFTWARE
The main advantage of trading using opposite FEMALE HEALTH and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| FEMALE HEALTH vs. SIVERS SEMICONDUCTORS AB | FEMALE HEALTH vs. Darden Restaurants | FEMALE HEALTH vs. Reliance Steel Aluminum | FEMALE HEALTH vs. Q2M Managementberatung AG |
| AXWAY SOFTWARE vs. The Hanover Insurance | AXWAY SOFTWARE vs. Regions Financial | AXWAY SOFTWARE vs. NEWELL RUBBERMAID | AXWAY SOFTWARE vs. OAKTRSPECLENDNEW |
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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